The race for $25,000 electric cars in the U.S. auto market has been won, but not in the way the auto industry wanted.
Hertz Global Holdings has been in Tesla sales mode since January, with a global fleet of 20,000 electric vehicles, accounting for nearly a third of the rental car company’s existing EV inventory at its dealers. The move is seen as a misstep in Hertz’s electric vehicle strategy – the company plans to order hundreds of thousands of Tesla, Polestar and General Motors electric models in 2021 – and reflects the U.S. auto industry’s sober awareness of electrification hype. By 2024, consumers will at least resist the expected pace of transition away from gasoline vehicles.
Although U.S. electric vehicle sales more than quadrupled from 2020 to 2023 and now account for more than 9% of total light vehicle sales, the growth rate has slowed, with automakers focusing more on hybrid vehicle sales. However, the eventual transition to electric vehicles remains inevitable, as sticker prices become more in line with those of internal combustion engine (ICE) cars – which is why sales are falling make things happen faster As car companies try to promote electric vehicles, battery technology improves driving range and charging infrastructure expands. Reducing the massive climate-changing carbon emissions produced by cars and trucks is a top priority.
With all of this in mind, now might be a good time to buy a used Tesla through its historic Hertz Hertz Auto Sales The division has been in business since 1977 and has approximately 70 branches across the country. Although as with any used car purchase from the manufacturer and independent dealers, online marketplaces or private owners, there are pros and cons.
On the plus side, Hertz has a large inventory of electric vehicles and an incentive to sell them at so-called “no-haggle” prices. “Our electric vehicles are in most major cities across the country and sell for an average of approximately $25,000,” a Hertz spokesperson said in an email. All Hertz-certified vehicles undergo a 115-point inspection and come with a 12-month/$12,000 Limited powertrain warranty of one mile (whichever comes first). Hertz also offers an out-of-warranty vehicle protection plan, as well as a seven-day or 250-mile buyback guarantee. Like most used car retailers, Hertz offers trade-in and financing options. Additionally, some used electric vehicles are eligible for subsidies of up to $4,000 federal tax creditand some states offer tax credits or rebates.
The downside is that while Hertz’s new electric fleet is only a few years old, the cars are leased so frequently that they have relatively high mileage compared to other used vehicles. This could mean more wear and tear since no one knows how hard they are driven.
Interested car consumers can consult Hertz and Tesla’s various online resources and conduct virtual test drives during the electric vehicle purchase process. Of course, a trip to the dealership for an actual test drive is a must, but there’s a lot to learn before you head out. The “Buy Electric Vehicle” button on the Hertz Auto Sales website recently listed 1,475 of 1,638 used electric vehicles listed as “Hertz Certified.” There are 1,186 Teslas, 157 Volvos, 104 Mercedes, 125 Chevrolet Bolts, and far fewer all-electric Kia and Subaru. Of course, these numbers change every day, and data shows these models are changing: A few weeks ago, 1,860 of the 2,242 electric cars on sale were “Hertz Certified”, including 1,341 Teslas and 500 Chevrolet Bolt.
Used electric vehicle prices have been falling significantly. March study Automotive research firm iSeeCars found that the average used car price fell 3.6% from last year, despite a 31.8% plunge in used electric vehicle prices, valued at $14,418. iSeeCars executive analyst Karl Brauer said in a report that second-hand Tesla prices fell 28.9%, the largest decline, “mainly due to Elon Musk’s significant price cuts on new Teslas.” Caused by”.
April, iSeeCars report All four Tesla models are among the fastest-selling used electric vehicles, with three models in the top four. “The fastest-selling used EV has an average price of $37,644, which is $20,000 cheaper than the fastest-selling new EV,” Brower said. “This is a pricing gap that manufacturers need to bridge to attract mainstream new-car buyers. ”
Three years is considered the “sweet spot” for buying used electric vehicles, including used Teslas, according to Yossi Levi. auto dealer Advice on buying new and used cars. “For consumers in today’s market, the best deal is second-hand electric vehicles,” he said. “Probably the best value purchase is an electric car that’s three years old.”
Hertz Tesla Model 3 used inventory and fine prints
Most of the Teslas used by Hertz are Model 3 sedans produced in 2022 and 2023. The base version of the new car has a range of 270 miles, and the long-range version has a range of about 350 miles. Hertz Teslas sell for between $21,000 and $36,000. The website also lists 163 Hertz Rent2Buy electric vehicles, including some Teslas. This refers to a program available in some states that lets you rent a valid rental car for up to three days or take a two-hour test drive for free. “If you purchase this vehicle, all lease fees will be waived,” a Hertz spokesperson said. The same warranty and buyback guarantee apply.
Every Tesla sold through Hertz includes general information about the model as well as details about that specific vehicle. A graphic representation of AutoCheck (an alternative to CarFax) provides a report on your car’s history, including accidents, recalls, and maintenance/repairs. There’s a caveat worth noting: not all damage-related events are reported to AutoCheck. It recommends having a third-party inspection done before buying a used car.
Although a test drive and third-party inspection is recommended, the entire transaction and car delivery can be completed online through Hertz for a fee. Delivery fees start at $225 within 75 miles and $350 within 200 miles, with longer distances subject to negotiation. If the buyer lives in Massachusetts and finds the perfect car in Colorado, this may be an option.
Tesla direct sales, online car market
Meanwhile, Tesla’s official website has information on all its new and used vehicles, all of which are certified, inspected and guaranteed by the manufacturer. As expected, the site has more used cars listed than Hertz, dating back to 2018.
There are also several different online marketplaces where you can buy a used Tesla. For example, CarMax lists 38 2021 Model 3 models, most of which are long-range versions with prices ranging from $26,000 to $37,000, depending on mileage. Carvana has 133 identical models, with prices ranging from $26,000 to $38,000.
Ask gen AI to help with the car buying process
Another big change is coming to the car shopping experience in 2024: Artificial intelligence is joining the mix as a sales assistant. Late last year, automotive research and shopping sites Edmunds and CarGurus launched the ChatGPT tool. Access to the chatbot does require a subscription to ChatGPT Plus, which costs $20 per month.
By asking the following question to the Edmunds bot – “I’m considering purchasing a used Telsa Model 3 from Hertz Car Sales. Can you provide information and advice?”, the response was:
“This is probably a great decision,” ChatGPT said. It then laid out the Model 3’s features and reiterated Hertz’s certification and no-haggle pricing policies. It recommends checking battery condition, software updates and whether Tesla’s original warranty is still valid. Like Hertz, Robot recommends a test drive and independent inspection.
The same question asked of the CarGurus GenAI tool resulted in six used Model 3s and a link to a dealer listing on the CarGurus website, but no mention of Hertz. The follow-up question — “Can you tell me about Hertz Auto Sales’ sales of the 2022 Tesla Model 3?” — produced the same list, plus some perfunctory bullet points about buying through Hertz.
When prompted to compare buying a used Tesla from Hertz versus buying a used Tesla from a Tesla dealer; whether a used car dealer or a private owner, the bot clearly described the pros and cons of each car, and finally The following advice was given: “When building a car, consider what factors are most important to you, such as price, warranty and peace of mind.
The chatbot won’t make the decision for the car buyer, but both chatbots conveniently condense a lot of information that a standard online search would require a separate person to gather from several different sources, including the Edmunds and CarGurus websites , these websites list Tesla as private. This is not surprising since it is the main instruction at the base level of GenAI.
Matt Quinn of CarGurus said: “We believe this will help customers find cars in a haystack, if you will, that they may not be able to find through our existing filters, and look for them on their own.
Consumers armed with this kind of AI-generated information should be fully educated once they show up in person at a Hertz sales location, Tesla or private dealer. “These tools help shoppers be more prepared and informed,” said Eugene Park, chief product officer at Edmunds. “Frankly, I think the best dealers appreciate those who are prepared to buy. shopper.”
For those who fear the cliche used car shopping experience, the day may soon come when they can flip the script and ask the salesperson: “Here’s what you have to do to get me in that car today.” car. “
read more: The basics of buying a used electric car
Correction: Subaru electric vehicle models are among the used electric vehicles offered by Hertz Auto Sales. An earlier version of this article misspelled the automaker’s name.
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