Discussion: Experiences Renting a Tesla Model 3 / Y from various companies

I have just come back from Florida where I rented a Model Y from AVIS from Orlando Airport. Here's what I thought about it all... I have a MY at home.

To start, I was surprised they were doing Teslas at all - I know Hertz do, but now AVIS as well it seems. I saw several MY's there and maybe a M3 too. The car had 92 miles when I picked it up, and I did around 700 miles during my stay.

All did not go well - although that is the subject of another post later on.

But in general:

You get one card-key in a relatively big clear plastic case. I did not get access through a phone and I could not assign my phone to be a key, so I was stuck with the card-key.

This means.... No walk-away locking, no auto-unlock, no pre-cool on climate, have to use the card-key every time to 'start' the card. Most annoying, but no different to a gas car I guess. How spoiled we are.

Supercharging was great... I guess Avis will bill me for it eventually!

Popped into Disney Springs one night, overjoyed to see some ChargePoint chargers... but they were CCS, so no joy there :-(

Avis do not have Premium connectivity, so no Satellite view, no streaming. Gah! And yes, I did connect to my phone as a hotspot to get around that, see my other posting in a few days.

Given that these cars are new, there are no ultrasonice sensors, which I found annoying, as I have them on my 2022 MY. It did have the trunk cover to keep things a bit more hidden and cool, so that was good.

Car came with the standard J1772 adaptor. No FSD obviously, and AutoSteer was disabled to start with.

Overall..... Good to drive 'the same' car as I own.....but annoyed to be back to 'basic' and having to set the car up as I wanted it.

So... thinking outside the box.... What does this look like for AVIS and Tesla? I think that Tesla and Avis need to do something about this 'basic' level of support and no App-access. It turns the Tesla from a tech-leader to an annoying expeience, which might put off future buyers. Avis probably don't want us using our phones as we can't then un-associate the phone, which is a security risk, but maybe Tesla needs to do something in this area for rentals?

There was (obvuously) no manual there - yes - I know why ! Not a problem for me as I have a MY... but what's a first-time Tesla renter supposed to do? It's not really a good experience, and that can hurt both Tesla and Avis. For the newbies, maybe a slip of paper saying 'Press here and here to see the manual'. If you know... you know.... if you don't... it's well hidden.

I don't know what Hertz do that's different, as I am Avis President's Club and so brand loyalty and all that.

Would I rent a MY or M3 from Avis again - yes! Great to get into a car that's almost identical to your own and drive through the night after a long journey. Discuss ;-)

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[gt2690b]

Renting a model 3 from Hertz now they removed my mobile access in the middle of the night make sure you keep the key with you just in case!!

 

[gt2690b]

Renting a model 3 from Hertz now they removed my mobile access in the middle of the night make sure you keep the key with you just in case!!

Ok just realized when someone unlocks the car with the key card it removes your app access

 

[whitex]

Buying at the height of Covid prices seems to have exasperated this issue. It’s surprising to me that they wouldn’t want to buy model Y’s now that prices have come down.

After all, this police dept sees the value in it.

https://twitter.com/x/status/1707871481667977689

One of the things Hertz mention was the cost of repairs which was higher for 3/Y. That cost has probably not gone down with the new car prices. The lower resale value is just whining, sure their current fleet costed them more because of it, but the renewal should be calculated based on new prices. Unless of course they think the new prices will continue to drop at the same rate, and 2027 Model Y will cost $20K brand new. Then buying one today for $50K to sell in 3 years is might to be worth it. Thy could just lease them all, but I think that Hertz kind of wanted to keep the lease profit to themselves - they just soured on leasing Teslas to themselves.

 

[dbeiler]

There are a significant number of 2022 LR AWD Model 3s with 40-90K miles listed on the Hertz website for under $25K. These very cars cost $60K when Hertz purchased them in 2022. That's $35K in depreciation in only 2 years. It gets worse. $25K is an artificially high value because the price is being propped up by the $4K used EV tax credit. Sans tax credit, the cars would be valued more realistically at only $21K.

If Hertz rented out these cars to UBER drivers at $1600 a month for two years, while paying for a new set of tires, etc. every 20-40K miles, did they even make any money on them?

 

[Hiline]

There are a significant number of 2022 LR AWD Model 3s with 40-90K miles listed on the Hertz website for under $25K. These very cars cost $60K when Hertz purchased them in 2022. That's $35K in depreciation in only 2 years. It gets worse. $25K is an artificially high value because the price is being propped up by the $4K used EV tax credit. Sans tax credit, the cars would be valued more realistically at only $21K.

If Hertz rented out these cars to UBER drivers at $1600 a month for two years, while paying for a new set of tires, etc. every 20-40K miles, did they even make any money on them?

Leasing to Uber drivers is a terrible idea. These drivers put 200-300 miles a day on their vehicles. After a year, the leased vehicle will have accumulated near 100k miles and lost 50% of their value even before price reductions.

The $4k used EV tax credit applies to only low income people - very few of them would ever think of paying $20k for a vehicle.

Honestly though, if I didn't already have a Tesla I'd jump on a 2022 Model 3 LR with 75k miles for $22k. This vehicle should last at least 300k miles.

 

[dbeiler]

The $4k used EV tax credit applies to only low income people - very few of them would ever think of paying $20k for a vehicle.

Woah...shots fired! $112K annual AGI for heads of household and $75K annual AGI for single filers is LOW income to you?

 

[SO16]

There are a significant number of 2022 LR AWD Model 3s with 40-90K miles listed on the Hertz website for under $25K. These very cars cost $60K when Hertz purchased them in 2022. That's $35K in depreciation in only 2 years. It gets worse. $25K is an artificially high value because the price is being propped up by the $4K used EV tax credit. Sans tax credit, the cars would be valued more realistically at only $21K.

If Hertz rented out these cars to UBER drivers at $1600 a month for two years, while paying for a new set of tires, etc. every 20-40K miles, did they even make any money on them?

Companies buying EVs (especially Teslas) at peak Covid prices exacerbates this issue. Had Hertz just now purchased these vehicles, I suspect the depreciation in a couple years to be far less in comparison. But of course the narrative isn’t saying that. They just say Teslas depreciated way too much. And that’s true but context matters.

I think in time though, rental companies will buy teslas again because the value now is hard to ignore. Rental companies have just been harmed due to their own poor timing and planning. Especially going all in without properly training staff and/or setting up charging stations and processes. Hertz should have just setup a couple areas for EVs to start and get the processes and training ironed out. Last year when I rented a Tesla from Fort Lauderdale, the staff barely had a clue about any of it.

 

[dbeiler]

Sure, but Hertz is selling 2022 Corollas with similar mileage for $18K which is only a 20% depreciation hit. Model 3 took a 50% depreciation hit, Corolla took a 20% depreciation hit. Not a good look for the EV rental biz.

 

[SO16]

Sure, but Hertz is selling 2022 Corollas with similar mileage for $18K which is only a 20% depreciation hit. Model 3 took a 50% depreciation hit, Corolla took a 20% depreciation hit. Not a good look for the EV rental biz.

Did the Corolla jump in price in 2022 by 38% from 2019 due to Covid related prices and demand? I know they went up but I don’t believe anywhere near that much. The most I could find was 20% over 5 years.

Elon even said that the Tesla high prices were embarrassing.

“The cheapest and most popular Tesla, the Model 3, currently sells from $48,190 in the U.S.—an increase of 38 percent over three years”

Tesla’s Musk Says “Embarrassing” Prices Could Drop at Some Point

Numerous price hikes at Tesla over the past two years have angered a lot of customers. In a conference call to discuss Q2 results this week, CEO Elon Musk admitted that prices are now “at embarrassing levels.” Unsurprisingly, he put much of the blame on supply chain and production disruptions, …

mobile.guideautoweb.com

And Elon’s goal has always been to reduce the costs of the vehicles.

Tesla's Prices Are "Embarrassing" To Elon Musk As He Offers Hope That They Might Come Down | Carscoops

Tesla's CEO blamed the increases on inflation and supply issues

www.carscoops.com

And materials like Lithium went crazy high for a while and now back down to lower levels. So EVs certainly had bigger price swings than gas cars but now the prices/value for EVs (at least Teslas) are getting near undeniably good and will continue to get better. Today is a much better baseline than a couple years ago.

 

[dbeiler]

Forget Covid pricing. Hertz's cars have depreciated 50% from today's $48K cost. The $60K covid cost results in an even higher depreciation rate.

 

[Hiline]

Woah...shots fired! $112K annual AGI for heads of household and $75K annual AGI for single filers is LOW income to you?

Haha sorry yeah I mis-recalled. I thought the limit was more like $50k for single filers. A$25k vehicle is reasonable for someone making $75k a year in most places.

 

[SO16]

Forget Covid pricing. Hertz's cars have depreciated 50% from today's $48K cost. The $60K covid cost results in an even higher depreciation rate.

When I check Hertz’s site for a Corolla and Tesla with similar mileage (66-67k miles) appears to have a fairly close depreciation to today’s prices.

Used 2022 Toyota Corolla LE Sedan For Sale in Springfield, VA | 45635

Check out the 2022 Toyota Corolla for sale in Springfield, VA at Hertz Car Sales. Contact the dealership to learn more about stock number 45635 and schedule a test drive today!

www.hertzcarsales.com

Used 2022 Tesla Model 3 Base Sedan For Sale in Des Plaines, IL | 55621

Check out the 2022 Tesla Model 3 for sale in Des Plaines, IL at Hertz Car Sales. Contact the dealership to learn more about stock number 55621 and schedule a test drive today!

www.hertzcarsales.com

Corolla: 30% discount. New: 24k vs 17k used from hertz.

Base model 3: 37% discount. New with todays prices: 35k from inventory vs 22k used from hertz. 36k ordered which is the new highland.

Base model Y new inventory with no miles is on Teslas site for 40k. Ordered base MY is 42k.

Not parity yet but moving in the right direction and getting close.

 

[dbeiler]

Getting off topic but where are you finding inventory 3s? There havn't been any 3s available in the south for weeks now. The only option in the south is new order base for $39K and LR for $48K.

Hertz's base models haven't depreciated at the same rate as their LR according to your examples.

 

[dbeiler]

Not to be a stick in the mud but I have to point out the 3 you referenced has 19" wheels. That comes out to $40,500 in today dollars.

The Corolla you referenced is an LE no options. Sells for $22K not $24K.

 

[SO16]

Getting off topic but where are you finding inventory 3s? There havn't been any 3s available in the south for weeks now. The only option in the south is new order base for $39K and LR for $48K.

Hertz's base models haven't depreciated at the same rate as their LR according to your examples.

Chicago zip 60601

 

[SO16]

Not to be a stick in the mud but I have to point out the 3 you referenced has 19" wheels. That comes out to $40,500 in today dollars.

The Corolla you referenced is an LE no options. Sells for $22K not $24K.

Not sure what you mean about the 19” wheels and “today’s dollars”.

I guess it depends on where looking. Corolla LE near me is around 24k.

 

[maksimfa]

I’m renting from hertz what I assume is a model 3 “midsize ev like Tesla model 3” San Diego. Priceline was 250 cheaper then hertz directly (50 ish a day including taxes and fees)

1) should I still expect a mobile charger in the trunk?

2) j-1772 adapter?

3) ccs2 compatibility (should I bring my adapter?)

Thanks! Bringing my 6 yo daughter so want to minimize silliness

Are you renting A Tesla model 3? or same type of class? Because Hertz also has EV6 and Polestar 2, and Volvo XC40 as well. The Bolt EV and SUV are also avail but generally lower class. IF you really want a tesla, reserve a tesla.

1. Depends on location but right now, likely not. 2 years ago, YES... now, no one checks and would say is about 50/50, also depends on location.
2. Again, 50/50... last few rentals... no.
3. There are plenty of tesla superchargers, why bring more crap?

 

[maksimfa]

The resale value reason is so flawed. It is precisely that Tesla vehicles have become so much cheaper that the rental car companies should buy them now since they are unlikely to go down much farther in value.

Insurance, on the other hand, is a legitimate concern, but one that is likely offset by lower maintenance costs.

you are also missing the BIG one... much higher repair costs. Hertz has disclosed that.

 

[Hiline]

you are also missing the BIG one... much higher repair costs. Hertz has disclosed that.

Shouldn't repair costs be covered by the renter? If the intent is to have the renter pay for collision damage waiver, Hertz could just bump the premium for Tesla cars.

 

[Jejunjm]

Are you renting A Tesla model 3?

Thanks. Got an email from hertz that it’s a model 3 (rented through Priceline of course).

I guess I’ll bring mobile charger and adapter