The competition for $25,000 electric cars in the U.S. car market has already won, but not in the way the automotive industry hoped. The second-hand car sales of the veteran car rental company Hertz (HTZ.US) are in full swing, with an average price of $25,000. In terms of product structure, the operating income of 10-30 billion yuan products was 401/1288/60 million yuan respectively.

As of January this year, since entering the Tesla sales model, Hertz has already entered the Tesla sales model, and its fleet of 20,000 electric vehicles has entered the dealer's site, accounting for nearly one-third of the company's existing electric vehicle inventory. This move has been seen as a stumbling block to Hertz's electric car strategy. In 2021, Hertz predicted that it planned to order hundreds of thousands of Tesla, Polestars and GM battery electric vehicles.

Although electric vehicle sales in the United States have grown more than four times from 2020 to 2023, accounting for more than 9% of total light vehicle sales, the growth rate has slowed down. Automakers are now focusing more on hybrid vehicle sales. However, the transition to electric vehicles seems inevitable, and car companies are working hard to promote their development: battery technology is improving driving range, charging infrastructure is expanding, and these factors are pushing electric vehicle prices down quickly, making electric cars' prices more comparable to gasoline cars. In addition, reducing carbon emissions is a priority.

Based on this, now may be a good time to buy a used Tesla through the long-established vehicle sales department of Hertz, which has been in operation since 1977 and has about 70 locations in the United States. Like other used car buying channels such as manufacturers, independent dealers, online markets or private owners, there are advantages and disadvantages to buying a used car through Hertz.

One of the advantages is that Hertz has a large number of electric vehicles available for sale at a "no-haggle" price. A Hertz company spokesman said in an email: "Our electric vehicles are available in most major cities across the U.S. with an average price of around $25,000." All Hertz-certified vehicles have undergone a 115-point inspection and come with a limited powertrain warranty of 12 months/12,000 miles (whichever comes first). Hertz also offers vehicle protection plans beyond the warranty period, as well as a seven-day or 250-mile repurchase guarantee. Like most used car retailers, Hertz offers trade-in and financing services, and some used electric vehicles are eligible for up to $4,000 in federal tax credits, with some states also offering tax credits or rebates.

One of the disadvantages is that although the Hertz electric vehicle fleet has a relatively young age of a few years, these vehicles are often rented out, so the mileage may be higher than other used cars, and perhaps more wear and tear due to the unknown condition of the rental vehicle.

Interested car consumers can consult and take a virtual test drive through online channels during the process of buying electric cars from Hertz and Tesla. Before the actual test drive, there is still a lot of information to be learned. The "Buying Electric Vehicles" section of the Hertz car sales website lists 1,638 used electric vehicles, of which 1,475 are "Hertz certified", including 1,186 Teslas, 157 Volvos, 104 Mercedes-Benz, and 125 Chevrolet Bolts, while pure electric Kias and Suburus are much less. These numbers will change in real time, but they also exhibit specific trends: a few weeks ago, among a total of 2,242 electric vehicles for sale, there were 1,860 "Hertz-certified" electric vehicles, of which 1,341 were Teslas and 500 were Chevrolet Bolts.

It is worth mentioning that the prices of used electric cars have been falling sharply. A March study by automotive research firm iSeeCars found that the average used car price fell 3.6% year-over-year, but used electric car prices plummeted 31.8%, equivalent to $14,418. Karl Brauer, an analyst at iSeeCars, said in the report:"Tesla's used car prices have fallen 28.9%, the biggest drop among all brands, mainly due to the impact of Elon Musk's aggressive price cuts on new Tesla models."

In April of this year, iSeeCars released a report stating that all four of Tesla's car models were the best-selling in the used electric car market, with three of them ranking among the top four. Brauer said:"At an average selling price of $37,644, the fastest-selling used electric cars cost $20,000 less than the fastest-selling new electric cars. This is the price gap that manufacturers need to bridge to attract mainstream new car buyers."

Yossi Levi believes that three years is the "sweet spot" for used electric cars (including used Teslas), and as a car dealer, he has expressed his views on buying new and used cars:"For consumers, the best value for money on the market right now is a used electric car, and the best value for money is probably a three-year-old electric car."

Hertz Tesla Model3 used car inventory and details

Hertz's used Teslas are mostly the Model 3 sedans from 2022 and 2023, with a range of 270 miles for the base version and about 350 miles for the extended range version. The price of Hertz Tesla ranges from $ 21,000 to $ 36,000. The website also lists 163 Hertz Rent2Buy electric cars, including some Teslas. This refers to a plan offered in some states that allows consumers to rent an active car for up to three days or a two-hour test drive for free. A Hertz spokesperson said, 'If you buy this car, all rental fees will be waived. The warranty and buyback guarantee also apply.'

Every Tesla automobile sold by Hertz contains general and specific details about that model. The AutoCheck (a substitute for CarFax) icon provides a history report on the car, including accidents, recalls, and maintenance/repairs. One thing to note is not all events related to damage are reported to AutoCheck, so it is recommended to have a third party check the used car before buying it.

While test-driving and third-party inspections are recommended, the entire transaction and delivery of the car can also be completed online through the Hertz website, albeit for a fee: $225 for delivery within 75 miles, $350 for delivery within 200 miles, and other delivery fees for longer distances, such as if the buyer lives in Massachusetts but finds the ideal car in Colorado.

Direct sales of Teslas and online automotive markets

Meanwhile, all new and used car information is available on the official Tesla website, and all vehicles are manufacturer-certified, inspected, and warranted. Not surprisingly, the website lists more used cars than Hertz, dating back to 2018. The price of Model 3 ranges from $ 24,000 to $ 38,800.

Tesla used cars can also be purchased through various online markets. For example, CarMax lists 38 2021 Model 3s, most of which are extended-range versions priced from $ 26,000 to $ 37,000, depending mainly on mileage. Carvana has 133 identical models with prices ranging from $ 26,000 to $ 38,000.

AI-assisted car buying

In 2024, there will be a major change in the car buying experience: Artificial intelligence will join as a sales assistant. At the end of last year, automotive research and shopping website Edmunds and CarGurus launched the ChatGPT tool, which requires a monthly subscription of $ 20 for accessing the chatbot.

For example, if you ask the Edmunds bot the following question: 'I want to buy a used Telsa Model 3 from Hertz Car Sales. Can you provide me with relevant information and advice?' You will get this reply:

ChatGPT says this could be a great decision and then lists the features of the Model 3 and reiterates Hertz's certification and no-haggle pricing policy. It recommends checking the battery condition, software updates, and the original Tesla warranty's validity. Like Hertz, ChatGPT also recommends test-driving and having an independent inspection.

After asking the same question to the CarGurus GenAI tool, six used Model 3s and links to a list of dealerships appear on the CarGurus website, but Hertz is not mentioned. When asked a follow-up question, 'Can you tell me about the 2022 Tesla Model 3 cars that Hertz Car Sales is selling?' the same list appears, along with some perfunctory words about buying through Hertz.

When asked to compare the pros and cons of buying a used Tesla from Hertz, a Tesla dealership, a used car dealership, and a private owner, the robot briefly lists the pros and cons of each and offers the advice, 'Consider what factors are most important to you when making your decision, such as price, warranty, and peace of mind.'

The chatbot won't make a decision for the car buyer, but the two above help the questioner condense a lot of information, which would take a lot of time to gather from multiple sources, including Edmunds and CarGurus websites. Also, the answers list local private dealers of Teslas and the locations of Hertz Car Sales.

Once consumers visit Hertz Car Sales, Tesla, or a private dealership in person, they can also get the AI-generated information. Eugene Park, Chief Product Officer of Edmunds, said, 'These tools have the ability to help shoppers make more informed decisions with more information.'

For those who resist the hackneyed experience of buying a used car, perhaps there will soon come a day when they can turn the tables and ask the salesperson, 'Today, you must make me take a ride in that car.'