Hey, Scotty: Want do you make of Hertz buying over 100,000 Teslas for their rental fleet? How can they do that, just coming out of bankruptcy, and how in the world are the renters going to charge them if they are dumb enough to rent a Tesla? How is a person returning a rental car to the airport going to charge the car before they return it? Thanks. Love your YouTube channel.
It will be interesting to see how long they keep them around.
Typically, car rental companies keep their cars for short amounts of time, usually getting rid of them before the warranty is up. And at least break even, if not make a profit when they get rid of it (taking account rental revenue, the cost of the car, and the selling price of the car.)
I personally have never seen a rental with more than 30,000 miles.
Hertz must have done their maths where a Tesla makes more business sense. Or some crazy associate did the maths to make the case to move this direction.
Then again, think about how many cars Hertz buys. This could be just another around of buying cars, and just happen to be Tesla.
The fact that they won't keep the cars long enough for them to really deteriorate probably figured heavily into the calculation and as I mentioned there may well have been government incentives thrown their way. (Frequently when a business does something that otherwise doesn't make sense it's because the heavy hand of government is "nudging" them in a particular direction.)
It certainly doesn't make a lot of sense. Maybe they're getting some kind of massive tax incentive.
No risk, no reward
I'm thinking how much Hertz wants to charge the customers, especially in this market.
