“[C]ollision and damage repairs on an EV can often run about twice that associated with a comparable combustion engine vehicle,” Hertz CEO Stephen Scherr said in a recent analyst call.
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This is concerning. These cars are essentially delicate ipads with wheels and repairs for them are costly and specialized. Driving, in general, is dangerous and accident prone. Waking up to twice your repair cost or insurance premiums must not be great for Hertz.
Also the article doesn't mention the EV value cut-off unrelated to MSRP. When the battery reaches 50-60% of its top capacity, then range anxiety is back. No one wants a 150-100 mile Tesla, or worse in the winter with the heating on.
Range issues aren't a big deal with regular owners as with regular use they only lose 10-15% range in the first few years, but Hertz drives theses hard everyday, unlike someone with a suburban commute who gets groceries on the weekend. Who knows what their internal data is suggesting. Id be very, very hesitant to buy a Hertz used Tesla. I'd want to see how bad the battery is first, especially what its real world range is in the winter. I wouldnt be surprised because how hard these cars are run, they'll have more battery degradation per year/per mile than a well kept car babied by someone who loves their Tesla.
I just took a look on their website and the long range sedan I'd be interested in at that trim level 2024 model is going to be about $50k. Hertz has a 2022, a less than 2 year old car, with 80k miles for asking $31k. A 40% depreciation in 2 years is very rough.
Their resale value is particularly punishing. Hertz doesn't keep cars for all that long, so a tough depreciation isn't something they can ignore.
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This is concerning. These cars are essentially delicate ipads with wheels and repairs for them are costly and specialized. Driving, in general, is dangerous and accident prone. Waking up to twice your repair cost or insurance premiums must not be great for Hertz.
Also the article doesn't mention the EV value cut-off unrelated to MSRP. When the battery reaches 50-60% of its top capacity, then range anxiety is back. No one wants a 150-100 mile Tesla, or worse in the winter with the heating on.
Range issues aren't a big deal with regular owners as with regular use they only lose 10-15% range in the first few years, but Hertz drives theses hard everyday, unlike someone with a suburban commute who gets groceries on the weekend. Who knows what their internal data is suggesting. Id be very, very hesitant to buy a Hertz used Tesla. I'd want to see how bad the battery is first, especially what its real world range is in the winter. I wouldnt be surprised because how hard these cars are run, they'll have more battery degradation per year/per mile than a well kept car babied by someone who loves their Tesla.
I just took a look on their website and the long range sedan I'd be interested in at that trim level 2024 model is going to be about $50k. Hertz has a 2022, a less than 2 year old car, with 80k miles for asking $31k. A 40% depreciation in 2 years is very rough.
Their resale value is particularly punishing. Hertz doesn't keep cars for all that long, so a tough depreciation isn't something they can ignore.