Staff Reports
Hertz, the car rental company, is selling off 30,000 used cars that are only two years old. These cars might not have the lowest mileage, but they have been well taken care of by professional mechanics. What’s surprising is that the prices for these cars are very low compared to other used cars on the market right now.
But here’s the catch – all these cars are Teslas. Now, you might wonder why Hertz is selling these cars. Well, it turns out that the company made a big bet on electric vehicles when they came out of bankruptcy. They planned to buy 100,000 EVs but only ended up with 30,000, most of them being Teslas.
YOU CAN’T SPELL “CAVEAT EMPTOR” WITHOUT AN E AND A V: How About a Cheap Used Car? It’s Only Two Year: YOU CAN’T SPELL “CAVEAT EMPTOR” WITHOUT AN E AND A V: How About a Cheap Used Car? It’s Only Two Years Old, But There’s a Catch… .. https://t.co/cuoL3Fj2D5 pic.twitter.com/wWYysyzMn5
— JPNWMN (@JPNWMN) May 17, 2024
Unfortunately for Hertz, people weren’t interested in renting these electric cars, so now they have to sell them at discounted prices. This is happening in a market where new electric vehicles are already being sold at lower prices with big discounts.
From a conservative perspective, this situation shows the risks associated with rushing into green energy initiatives without considering market demand and practicality. It’s a reminder that government intervention and mandates often lead to financial losses and market imbalances.
As tempting as it may be to buy a used EV for a lower price and get a tax credit, there are important factors to consider. Electric cars tend to depreciate faster than traditional vehicles. Additionally, used EVs can come with unexpected problems that may end up costing buyers a lot of money in repairs.
For example, a buyer who purchased a used Tesla from Hertz faced issues soon after buying the car, leading to a hefty repair bill. This underscores the potential risks of buying used electric cars without fully understanding the long-term costs and maintenance requirements.
In the end, Hertz has only been able to sell a portion of their EVs, and sales have slowed down. This situation highlights the challenges that companies and consumers face in the rapidly evolving electric vehicle market. It serves as a cautionary tale about the importance of informed decision-making when it comes to purchasing green technology.
