Buying a used car from Hertz can be a roll of the dice. Rental cars often fall into poor condition, are abandoned, and are repeatedly disposed of.
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These cars are often rented to rideshare drivers, taxi services, and travelers who need a short ride. This short period of time leads to a lack of vehicle care, proper maintenance, and overall cleanliness.
In January, Hertz announced it would sell 20,000 Tesla cars, citing high maintenance costs and lack of consumer demand.
This content creator highlights the potential benefits of purchasing a used Tesla Model 3 or Model Y from Hertz.
The original video was created by TikTok user @denniscw_, who visited a Hertz Rental Car store and saw a used Model 3 listed for $14,000. The author reviews the car’s exterior condition and considers the potential for electric vehicle tax deductions.
Why is Hertz selling used Tesla cars?
Kelley Blue Book reported that Hertz is facing collision cost issues. Expensive batteries require replacement even after a minor collision. The cost to replace a new Tesla battery ranges from $13,000 to $20,000.
Potential Benefits of Buying a Used Hertz Car
The purchase price for a new Tesla Model 3 or Model Y will range from $40,000 to $55,000. Therefore, it is attractive to be able to purchase a used Tesla for half the price of a new Tesla. In addition to this, some Teslas are eligible for a federal tax credit of up to $4,000.
What vehicles qualify for this federal tax credit?
According to the IRS, Tesla models released before 2022 with a selling price of less than $25,000 are eligible for a $4,000 tax credit. Annual income is also taken into account, and individuals can receive up to $75,000 or $150,000 for married couples filing jointly.
What to consider under the hood
JD Power reported that the Tesla Model 3 and Model Y battery warranties are eight years or 100,000 miles. Tesla battery replacements range from $13,000 to $20,000, including labor. Batteries are expected to last 10-20 years, but living in hot climates is known to shorten battery life faster.
According to Kelly Blue Book, most of Hertz’s Tesla models have already covered more than 60,000 miles. Once a Tesla has driven more than 100,000 miles, the warranty expires and drivers are responsible for the cost of battery replacement. The reason why electric vehicle battery prices are so high is due to the demand for the natural minerals (nickel, lithium, and cobalt) used in battery manufacturing.
What condition are these used Tesla cars in?
As you know, rental cars are usually not well maintained. Countless drivers use these vehicles for short-term rentals, leaving even more room for improper care. When you don’t own it, you treat it differently.
In the TikTok clip, the content creator briefly explains what the car looks like. He said if the front and rear bumpers had been replaced, that generally meant the car had been involved in some sort of collision. The creators did not pay attention to the interior, but that could be a completely different story.
Overall, content creators were impressed with the Tesla they saw at Hertz. He suggested this could be a great opportunity to buy a Tesla for people who qualify for tax credits and are looking for a good deal on a Tesla.
The TikTok clip had more than 46,000 views and 55 comments.
“Hertz insiders are telling me to stay away,” one person claimed.
“Nothing beats a used Uber,” one person joked.
“Don’t buy Hertz Tesla. Those things are badly used and abused,” another source commented.
@denniscw_
I went to buy a $15,000 Tesla Model 3 from HERTZ ❗️Here’s what happened ⚡️Get $1,000 off – Bio in link
♬ Wii Shop Channel Trap – OSRSBeatz
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