Tesla CEO Elon Musk recently nixed hopes of a regular Tesla model ever selling for $25,000.
But he was talking about new models: For car rental company Hertz, the race to sell used Teslas and other EVs at ever-lower prices is not only still on, but accelerating.
Hertz had kicked off 2024 by announcing it was trying to get rid of 20,000 previously-rented, used electric vehicles at “no-haggle prices” before the end of the year. By the end of April, that figure had risen to 30,000 EVs, with average selling prices of around $25,000.
Now, with less than two months to finish the year, prices are reaching new lows: Up high on the sales page of the car-rental company’s website, you can find used Teslas going for less than $20,000, Chevrolet Bolt EVs under $14,000, and Hyundai Kona electric SUVs under $13,000.
And for car buyers ready to act fast, those vehicles are still eligible for the Biden administration’s $4,000 tax incentive for used EVs. It was recently reported that the incoming Trump administration intends to end federal tax credits upon the purchase or lease of EVs.
Hertz-certified EVs are given a 115-point inspection and include a 12-month or 12,000-miles limited powertrain warranty. The car-rental company also sells vehicle protection plans that last beyond the warranty.
Buyers can also return a vehicle within 7 days or 250 miles after their purchase, whichever comes first.
Hertz decided to electrify its fleet of rental vehicles back in 2021, ordering hundreds of thousands of Teslas, Polestars and GM models. The move initially made sense, as maintenance costs for EVs are much lower than for gas-powered vehicles.
But the car-rental company got blindsided by Tesla’s moves to slash the price of new models, which drastically reduced the value of used vehicles. By 2023, Hertz’ EV fleet faced an accelerating rate of depreciation it could no longer handle, triggering the fire sale.