Hertz made headlines in 2021 announcing a $4.2 billion deal to purchase up to 100,000 Tesla electric vehicles (EVs) for their global rental fleet. A little over two years later and the company has started selling off some of their early US inventory, and if you don’t mind purchasing a former rental car, you can find some really good deals.
These deal could be made even better if Hertz is able to apply the $4,000 tax credit for used EV purchases.
Most rental companies keep new cars in their fleet for one to two years before selling them to make room for new inventory with fewer miles on the odometer. That time has come for some of Hertz’s early Tesla purchases, with the Hertz website listing over 800 Model 3 and Model Y vehicles for sale across the United States. Despite also having Tesla inventory in Canada, there are unfortunately no listing yet for cars north of the border.
According to the Hertz website, there are over 700 Model 3 vehicles and 127 Model Y SUVs for sale in the US. Unsurprisingly the majority are located in California, but there are listings in 24 different states across the country.
The most affordable Model 3 at the time of writing is a 2021 Model 3 Standard Range Plus (SR+) in Inglewood, California, listed for US$20,200, however X user @RivianUpdates was able to find several earlier today for under $20,000, and as low as US$17,700.
The 2021 Model 3 we found has 90,167 miles (145,110km), meaning it is still within its battery warranty limit of 100,000 miles or 8 years (96 months). The cheapest Model 3 Long Range at the time of writing is US$28,400, with 94,540 miles, but the Long Range comes with a longer factory battery warranty of 120,000 miles.
If you are looking for a Model Y, only the Long Range is available and prices for the electric SUV start as low as US$31,100 for one in Arizona with 85,490 miles. If mileage is a concern, there are some with less than or around 50,000 miles, but those are priced in the mid to high US$30K range.
It is worth nothing that the battery warranty on the Model Y is also 120,000 miles.
According to Hertz each of their vehicles also comes with a 12-month/12,000 mile limited powertrain warranty (curious what that means for an EV), which includes:
- 1 Year of Roadside assistance with Unlimited Miles
- Towing Coverage
- Rental Car Coverage
- Travel Breakdown Assistance
There are obviously things to consider when purchase an ex-rental vehicle, like damage, especially to the battery, but as we note above many of the vehicles are still well within their battery warranties. Additionally, many of the Model 3s listed for sale have lithium iron phosphate (LFP) batteries that can be charged to 100%, so any potential damage from excessive charging would likely be limited.
These concerns might be moot if you can find a really good deal, like a sub-$20K Model 3, and get the $4,000 tax credit. According to @RivianUpdates, Hertz has yet to confirm if they are able to apply the credit on their purchases.
Would you consider purchasing a former Hertz rental Tesla? Let us know in the comments below.