Considering purchasing a pre-owned Tesla from Hertz? Here are essential factors to keep in mind.

Considering purchasing a pre-owned Tesla from Hertz? Here are essential factors to keep in mind.

Hertz Global Holdings Inc. announced its plan to sell approximately 20,000 electric vehicles from its fleet, including a significant number of Tesla Model S sedans, as part of a strategy to better align with the anticipated demand for EVs. This move represents a shift for Hertz, which had previously committed to electric cars in 2021 with a substantial order of 100,000 vehicles from Tesla.

For prospective car buyers eyeing these used EVs from Hertz, opinions among experts vary. Sean Tucker, senior editor at Kelley Blue Book, expressed mixed feelings after reviewing the available listings on the Hertz website, describing the prices as surprisingly reasonable for used electric vehicles. Listings include a 2021 Tesla Model 3 Standard Range Plus Sedan with 31,647 miles priced at $20,125 and a 2022 Tesla Model Y Long Range SUV with 92,789 miles listed at $40,886.

Some industry observers find these prices notably affordable, with certain models even marked as low as $17,700. Additionally, some used EVs may qualify for a federal tax credit of up to $4,000, enhancing the appeal for buyers. However, to be eligible for the credit, the EV must be a 2022 model or earlier, have a sale price below $25,000, and meet specific income criteria.

Despite the attractive prices, potential buyers should be aware that many of the vehicles Hertz is selling already have accumulated 50,000 to 60,000 miles, even for cars that are just a year old. Hertz emphasizes its nonnegotiable pricing strategy and offers a "Rent2Buy program," allowing buyers to rent a vehicle for up to three days or take a free two-hour test drive before making a purchase. The company plans to expand its offering of EVs with additional makes and models in 2024.

 

------The article excerpted from Yahoo finance.

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