You can now buy Tesla EVs for just $21,000, thanks to Hertz. However, will you purchase a Model 3 or Model Y knowing that it was already used as a rental electric car?
On Thursday, Jan. 11, Hertz—a popular American car rental company—said in its official regulatory filing that it is planning to sell tens of thousands of ex-rental Tesla EVs.
Hertz's initiative is a great bargain considering that a new Tesla electric vehicle typically costs around $35,000. This means that you can save up to $14,000 if you purchase one of Hertz's ex-rental Teslas.
$21K Tesla EVs Now Available, Thanks to Hertz!
As of writing, Hertz listed over 600 ex-rental Tesla EVs on its website. Its ex-rental EV offers include Model 3 and Model Y units.
According to Yahoo Finance's latest report, the Tesla EVs offered by Hertz range between $21,000 (2021 Model 3) AND $40,886 (2022 Model Y).
Hertz explained that it is winding down its effort to convert a sizable portion of its rental fleets to electric cars. The American car rental service provider explained that it needs to do this because of high repair costs.
To solve this problem, Hertz is planning to sell around 20,000 ex-rental Tesla EVs.
"[C]ollision and damage repairs on an EV can often run about twice that associated with a comparable combustion engine vehicle," said Hertz CEO Stephen Scherr via CNN Business.
"The MSRP declines in EVs over the course of 2023, driven primarily by Tesla, have driven the fair market value of our EVs lower as compared to last year, such that a salvage creates a larger loss and, therefore, greater burden," he added.
Read Also : Tesla Cybertruck Colored Wraps Could Arrive-Here's Why Other Color Options are a Big Deal for EV Buyers
Are Used EVs Worth It?
Just like buying a used gas-powered vehicle, the main benefit of purchasing a 2nd-hand EV is also allowing car owners to save tons of money.
But, it also has cons. To give you more idea, here are the pros and cons of purchasing a used electric car:
Pros
- Used electric cars are way cheaper than brand-new ones.
- Since they're already used, there's a high chance the previous owner already fixed software issues and other EV problems.
- Some of them may already have carpool exemption stickers and other perks.
Cons
- The EV warranty may already be expired (or about to expire).
- The battery health may already be declining.
- Of course, there's the usual wear and tear.
