Hertz announced earlier today it plans to convert its fleet of rental vehicle to electric, and has placed an initial order for 100,000 Tesla Model 3s.
The company said the cars will be added to their fleet by the end of 2022, with the first Model 3s arriving as early as next month.
In preparation, Hertz has already added the electric sedan to its reservation website, and the prices are extremely competitive.
Drive Tesla was able to find the Model 3 listed for pick-up at the Orlando International Airport (MCO) at a rate of $114.98 per day under the ‘Pay Later’ option. Paying for the rental upfront reduces that cost to $103.48 day.
That is just $11.53 more per day than a Ford Focus in the ‘Small Sedan’ category, and just $8.52 more per day than a ‘Medium Sedan’ like a Mazda 3.
That gap is so close that once you add in the fuel savings, it will likely work out cheaper for most renters making it a no-brainer to select the Model 3.
To give a better sense of how reasonable these rates are, a search of the car-sharing network Turo reveals Model 3s in the same area for the same dates rent for upwards of $300 per day.
These rates also show how massive this deal will be for Tesla, and not just because of the $4.2 billion it will receive from Hertz.
Thousands of people will soon get their first experience in a Tesla, which as we all know is all that it takes to convince them what their next car should be. Renting a Tesla on vacation will no doubt lead to countless new orders from customers buying their first EV.
UPDATE: If you are wondering what the terms and conditions are when renting a Model 3, particularly in terms of charging, we break them down in the Twitter thread below.
If you prefer, we have also included them here.
CHARGE LEVEL AT PICK-UP AND RETURN– Hertz will endeavor to provide the EV at time of vehicle pick-up with a battery charge of 80%. You are required to return the EV with a minimum charge of 10%. You are responsible to maintain a sufficient charge on the EV during your rental. You will be responsible for the cost of any tow if the EV is not drivable due to a low battery. You are not authorized to call a private tow on Hertz’ behalf. All tows of the EV must be by flatbed and must be arranged through Hertz Emergency Roadside Assistance.
RANGE – Range is the estimated distance an EV can travel on a single charge. The EV information provided with your reservation that describes a range is not guaranteed. The battery life of the EV is impacted by a number of factors including weather, driving and road conditions. It is your responsibility to ensure the EV has sufficient remaining battery life to return the EV to Hertz or reach an EV charging station.
DAMAGE TO CHARGING STATIONS – You are responsible for any damage to the EV, the charging station equipment or the charging location when charging the EV during your rental. You will indemnify Hertz for any charges, fines, or penalties You incur for any damage or loss to the EV, the charging station or location during your rental.
EQUIPMENT – The EV will be provided to You with certain equipment for which You are responsible. You are responsible to notify Hertz if any of the following equipment is not with the EV at the time of pick up. Otherwise, You will be charged for any missing equipment at return. Loss Damage Waiver (LDW) does not apply to damage or loss of the equipment provided with the EV.
Key card or fob – You are responsible to return the Key card or Key fob upon your rental return. If the Key card or fob is damaged or lost, You will be charged to replace the Key Card or fob and a service fee. The Key card or Key fob must only be used to charge the EV You have rented. Sharing the Key card or Key fob, using additional Key cards or Key fobs to charge the EV, or charging other vehicles is prohibited. Any misuse of the Key card or Key fob in breach of these Rental Terms will result in additional usage charges.
Tesla Charging Kit – The Tesla Charging Kit consists of 1 Mobile Connector; 1 Storage Bag; and 1 NEMA 5-15 Adapter. You are responsible to return all contents of the Charging Kit upon your rental return. If the Charging Kit, or any part of the contents are damaged or lost, You will be charged for a complete Charging Kit, as these items are not available to be replaced individually, and a service fee.
J1772 Adapter – You are responsible to return the J1772 Adapter on your rental return. If this Adapter is damaged or lost, You will be charged to replace the Adapter and a service fee.
DASH CAM AND PERSONAL DATA – The EV may be equipped with a Dash Cam which may record incidents involving the EV during your rental and privacy is not guaranteed. You are responsible at return to delete all personal data input by You or collected by the EV during your rental.