Hertz is offering a portion of its electric vehicles at unprecedented low prices as part of a shift to reduce its EV fleet by 30,000 vehicles. The company's EVs are now available for an average of $25,000, a large markdown from standard market prices.
“Our EVs can be found nationwide in most major metros and averaging around $25,000,” one Hertz spokesperson wrote in an email to CNBC.
A search of Hertz's current car sales inventory shows a 2023 Mercedes-Benz EQB 250+ SUV with 8,200 miles for less than $35,000. A 2018 Chevrolet Bolt with 33,000 miles is offered for less than $12,000. Buyers can also pick from Subarus, Teslas and Volvos.
Hertz announced earlier this year it would be scaling back its initial electrification strategy, which included a landmark deal with Tesla in 2021 to purchase 100,000 EVs and a goal to have 25% of its fleet electric by the end of 2024. In a regulatory filing in January, it said "Expenses related to collision and damage, primarily associated with EVs, remained high in [Q3 2023]."
The vehicles being sold undergo a 115-point inspection and come with a powertrain warranty of one year or 12,000 miles, whichever comes first. Hertz also offers upgraded protection plans and a seven-day or 250-mile buy-back guarantee. Additionally, some EV buyers may be eligible for up to $4,000 in federal tax credits, alongside other state and local incentives.
In April, Hertz reported a net income loss of $392 million for the first quarter of 2024, a substantial increase from the $126 million loss recorded during the same period last year. The loss per share of $1.28 almost tripled what financial analysts had projected.
Former Hertz CEO Stephen Scherr resigned in March, shortly after the company's announcement to downsize its EV fleet. Gil West, the former COO of Delta Airlines and GM's self-driving division, Cruise, has since taken over as CEO.
