Discussion: Hertz orders 100,000 Model 3's

[CapeOne]

lol. ah no. unless you have *any* source that Hertz is acquiring used cars with already quite some miles on it... (which would be a first for any rental car company)

While I also doubt this Hertz deal involves used cars, rental car companies including Hertz have actually had to resort to buying large numbers of used cars because of a lack of available new cars due to things like chip shortages. That's another factor that has driven up used car prices.

 

[bjrosen]

Half this deal is Uber, Hertz is going to rent 50K Tesla's to Uber drivers and potentially 150K. Makes perfect sense, the SR+ has LFP batteries that last several times as long as the NCA batteries in the AWD, cab drivers can put on a 100,000 miles a year. Tesla's will be cheaper to run and have much less maintenance than gas cars, they don't use energy when idling and they are at their most efficient in stop and go traffic which is where gas cars are at their worst.

 

[TexasTezla]

While I also doubt this Hertz deal involves used cars, rental car companies including Hertz have actually had to resort to buying large numbers of used cars because of a lack of available new cars due to things like chip shortages. That's another factor that has driven up used car prices.

I have seen articles about this. But I am sure they are buying VERY low mileage vehicles that can pass as new. No way will they buy cars with more than say 5k miles on them...if that much!

 

[Knightshade]

Half this deal is Uber, Hertz is going to rent 50K Tesla's to Uber drivers and potentially 150K. Makes perfect sense, the SR+ has LFP batteries that last several times as long as the NCA batteries in the AWD, cab drivers can put on a 100,000 miles a year. Tesla's will be cheaper to run and have much less maintenance than gas cars, they don't use energy when idling and they are at their most efficient in stop and go traffic which is where gas cars are at their worst.

I'm honestly not sure I understand the uber part of the deal.

The price quoted is MUCH higher than someone just buying or leasing one directly from Tesla...like $1300/mo BEFORE taxes and fees.

 

[CapeOne]

I have seen articles about this. But I am sure they are buying VERY low mileage vehicles that can pass as new. No way will they buy cars with more than say 5k miles on them...if that much!

Possibly, I'm not sure how “low mileage” these used cars are. Due to new car shortages, rental car companies have become a bit desperate. As well as buying used cars, they’re having to keep existing cars in service longer. I understand that the average rental car coming up for sale at major auctions this year reached around 80k miles.

 

[bjrosen]

I'm honestly not sure I understand the uber part of the deal.

The price quoted is MUCH higher than someone just buying or leasing one directly from Tesla...like $1300/mo BEFORE taxes and fees.

Leasing assumes 10,000 miles a year, the typical NYC taxi driver does 70,000 miles a year. I'd guess that a full time Uber driver would do something similar.

 

[Knightshade]

Leasing assumes 10,000 miles a year, the typical NYC taxi driver does 70,000 miles a year. I'd guess that a full time Uber driver would do something similar.

Ok, but just buying the car would still be like half the price Uber is gonna be renting them for.

45k car loan at 3% (and you can get nearer 2) for 72 months is $684 a month to own.

Hertz/Uber deal is for $334 per week for rental.

 

[texas_star_TM3]

one is locked in for 72 months ; the other is flexible and per week... obviously it will cost more.

flexibility isnt cheap

Ok, but just buying the car would still be like half the price Uber is gonna be renting them for.

45k car loan at 3% (and you can get nearer 2) for 72 months is $684 a month to own.

Hertz/Uber deal is for $334 per week for rental

 

[dmurphy]

Ok, but just buying the car would still be like half the price Uber is gonna be renting them for.

45k car loan at 3% (and you can get nearer 2) for 72 months is $684 a month to own.

Hertz/Uber deal is for $334 per week for rental.

Sure, but as @texas_star_TM3 said ... It's a 45k and 6 year commitment for an Uber driver vs. $334 and one week.

Many Uber drivers are not in the financial position to splash out $45k, nor will they necessarily qualify for that top-tier credit needed to get the 2-3% rate you reference.

It's not necessarily fair, it's not necessarily right and it's not necessarily the deal of the century, but it IS reality.

I'd be willing to place a fairly large wager that the average tenure of a typical Uber driver is less than 6 years.

 

[CapeOne]

I believe Hertz has had an Uber driver rental car program for about five years. These are short term (as little as one week) rental contracts that include insurance, maintenance, roadside assistance, etc. Drivers can renew the contract up to three times (28 days total) before having to return the car. At that point, they can open a new contract for another car if desired.

 

[TexasTezla]

Possibly, I'm not sure how “low mileage” these used cars are. Due to new car shortages, rental car companies have become a bit desperate. As well as buying used cars, they’re having to keep existing cars in service longer. I understand that the average rental car coming up for sale at major auctions this year reached around 80k miles.

Wow, I don't think I have ever driven a rental with more than 10k miles on it

 

[dmurphy]

Wow, I don't think I have ever driven a rental with more than 10k miles on it

I’ve had rentals with 28-30k on them somewhat routinely from Avis. They’re well maintained though, so you really wouldn’t know it.

 

[texas_star_TM3]

Possibly, I'm not sure how “low mileage” these used cars are. Due to new car shortages, rental car companies have become a bit desperate. As well as buying used cars, they’re having to keep existing cars in service longer. I understand that the average rental car coming up for sale at major auctions this year reached around 80k miles.

doubtful. Rental car companies hate doing maintenance and with 80k miles there's substantial manufacturer required maintenance involved... 8x oil changes, engine filter change, brake fluid flush, potentially tranny fluid flush etc.... the absolute highest rental mileage i've seen in 20+ yrs of renting cars frequently was ~40k miles...

 

[CapeOne]

Wow, I don't think I have ever driven a rental with more than 10k miles on it

I think rental car companies have typically tried to retire vehicles at between 25k and 40k miles but conditions are very different right now due to new car shortages and so on. These companies having to buy notable numbers of used cars, keep cars in service longer, etc. is currently the "new norm," Hopefully it won't continue to be for too long.

 

[CapeOne]

doubtful. Rental car companies hate doing maintenance and with 80k miles there's substantial manufacturer required maintenance involved... 8x oil changes, engine filter change, brake fluid flush, potentially tranny fluid flush etc.... the absolute highest rental mileage i've seen in 20+ yrs of renting cars frequently was ~40k miles...

They may not like it but conditions are very different right now. Manheim, one of the largest if not the largest auto auction companies in the world, stated a few months ago that the average rental car coming to auction had 79k miles.

 

[Knightshade]

doubtful. Rental car companies hate doing maintenance and with 80k miles there's substantial manufacturer required maintenance involved... 8x oil changes, engine filter change, brake fluid flush, potentially tranny fluid flush etc.... the absolute highest rental mileage i've seen in 20+ yrs of renting cars frequently was ~40k miles...

This actually makes the Tesla deal even more interesting.

Apart from basic wear stuff (tires, wipers, etc) there's no maintenance at all for the first 5 years apart from change air filter every 2, and check brake fluid.

 

[ODWms]

I remember a rental I had once that had around 40,000 miles on it, and how beat up it seemed. While that may not be typical, its probably true what they say about people abusing rental cars.

 

[ThomasD]

Don't rental cars have branded titles

 

[iwannam3]

Don't rental cars have branded titles

) Brands for states/jurisdictions participating in the National Motor Vehicle Title Information System (NMVTIS) program (known as "Standard Brands,") are maintained in the brands list by NMVTIS and include, but are not limited to:
(i) Rebuilt;
(ii) Junk;
(iii) Destroyed;
(iv) Salvage - Damaged;
(v) Salvage - Retention;
(vi) Salvage - Stolen;
(vii) Salvage - Other;
(viii) Flood damage;
(ix) Hail damage;
(x) Saltwater damage;
(xi) Totaled

Looks like some states may not brand rentals

Washington state has this additional brand (b) Former for hire, as defined in RCW 46.72.010;

 

[roblab]

This actually makes the Tesla deal even more interesting.

Apart from basic wear stuff (tires, wipers, etc) there's no maintenance at all for the first 5 years apart from change air filter every 2, and check brake fluid.

And some of us who owned 5-year-old Teslas didn't even do that much maintenance. As in none. I guess if you never took a bath you'd need to change the air filter more often, but I dunno. I seldom run AC in my car, rarely run heat (that's California for ya...) and never ever think about changing the air filter. And using regen pretty much alla time, why would you need to check the brake fluid?? I never did. Drive it like you own it!