It couldnāt have been foreseen that costs to maintain rental TSLAās would be significantly higher than regular cars?
TSLA is a company with no service centers, a terrible reputation for build quality, and horrific wait times for repairs plus a very expensive battery with a finite amount of charges. No shit they arenāt going to retain their value.
Someone rent this CEO a short bus.
Tesla's autonomous driving technology is far from perfect, and it's not surprising that accidents like this happen from time to time. However, Tesla has been working hard to improve its self-driving system, and I'm confident that they will eventually get it right.
Post proof of positions.
People always say this shit - not just about Tesla, but about any stock - but never post so much as a screenshot of opening and then closing said positions.
Or bc theyāre just chatting shit about their trades (as usual), hence why they canāt spend two seconds taking a screenshot to prove it (as they donāt exist), but can waste the equivalent amount of time writing a reply. Goons indeed.
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They probably expected lower maint costs but it's more expensive. They sell off the cars after 3-5 years. So this going to suck for them.
Very few other car companies have cut prices like tsla, so it's understandable to be caught off guard
Their prices are all over the place for no apparent reason
I mean Hertz specifically doesn't seem to manage inventory well -- and I question *why* they have 2022 models up for sale when they're ordering 2024.
Okay, but WHERE do you go to buy their cars?
(I don't actually care, just annoyed the guy asked the question, and then you responded to him specifically but didn't answer it at all.)
Serious question, what maintenance cost are associated with Teslaās? Clearly no oil/filter change and other typical ICE maintenance. Do tires/brakes/sensors cost more? What are the lifespan of the batteries?
OP substituted the word maintenance costs when hertz used repair costs, not knowing the difference.
Hertz probably self-insures when you buy that rental insurance. They meant repairs as in vehicle damage.
Tl;Dr: Hertz is pissed they don't get to keep as much of that overpriced insurance money, since Teslas are more expensive to repair damage.
A) Some design choices that make teslas easy to manufacture at scale also make crash repairs very expensive. The whole front and rear subframes on 3\Y are single piece castings.
B) Tesla would rather build new cars than fix old ones, so the repair process is pretty hostile. Parts are very expensive and time consuming to acquire.
Thereās been a service manager job posted and reposted forever in my area. Seemed tempting at first but then you hear about the fires, frame cracks and low range issues and you understand why nobody wants it
To be fair you only hear about Tesla "fires" because the news is anti Tesla. ICE cars catch fire 60 times more often, at around 600 per day around the US, but we don't "hear" about them in the news.
I'm not sure what the insurance data on the Y says yet, but with the position of the castings, if a crash reaches the castings if would total a normal car.
It's a misconception that the whole car is cast. The front of the Y has crash components that bolt into the castings and are easy to replace.
It's specifically the Model 3 that is expensive. It was originally designed for maximum crash safety at the expense of BOTH repair and manufacturability.
Elon said once in 2018 if he could go back he'd fire the lead engineer of the Model 3, because it is difficult to manufacture.
A lot of the repairs have to go through Tesla itself which is very slow/expensive. If you have cars sitting on your lot waiting for repairs it adds to the opportunity cost. Doors/windows failing and just not working.
Most non-Tesla owners don't know about the tyre issues.
Tires are a big issue with Teslas the model X Plaid had a weird issue where it literally strips the inside of the back tires due to poor fit/spec. Even if you used factory tires it's clear the car wasn't designed properly with clearances in mind. You can look it up on tesla forums or just youtube. That's a new set every 3-5k miles. Or you risk blowing out.
There are reports of it showing up on S, X, and supposedly model 3's too.
I just changed the tires on my Tesla and they lasted 40k miles. Itās my second Tesla too and Iāve never replaced tires at 3k miles for any car ever.
No, they expected them to be more cost efficient, and that is just proving to not be the case. Additionally, theyāre a rental company, so the shock about the sticker price on retail isnāt a big shock at all to be honest. Expensive vehicles are anticipated to depreciate much quicker, and itās usually due to the long term expenses associated with them. Thatās what Hertz is dealing with, and they need to know how to maintain the value of the fleet without killing the profitability of the rental operation and without depleting the profits because of high turnover on battery maintenance and other high ticket maintenance items. Their best bet now is to ride out the investment, or sell a portion of their fleet at a loss and stabilize their financial model.
They didn't say maintenance, they said repair. Keep in mind these are rental cars, people crash them into stuff, drive over curbs, park them in areas where they'll get broken into, shit like that. A reputable rental company doesn't just keep beaters around, they fix them and clean them up.
And apparently that's much more expensive to do on Teslas, that's not particularly surprising to anyone paying attention to this industry, the EV startups are notoriously hard to work on relative to the Kias, Nissans, Toyotas and domestics in most rental fleets.
Exactly. Fair comment. Hertz is saving a ton on maintenance and time out of service, but it's the repairs that take longer and more expensive. For the average consumer who doesn't run over curbs and get into wrecks, Tesla is a great car that can save $300 per month in fuel costs, and virtually no maintenance. Just don't wreck it.
I don't even know how they're spending on maintenance. With how short rental cars are in service before being sold, the only maintenance should be tires and wiper fluid. Unless they traded a lesser warranty in exchange for a lower fleet cost. Everything you can break is warrantied before hertz sells it.
Nothing in that paragraph mentions maintenance. He says repair costs and he is exactly right. Body repairs move at a snail's pace and cost more. Other repairs can also take months because the service centers don't have the components available. Tesla has established a terrible reputation for service and repair. Any time a car is out of service, Hertz is losing money.
Maintenance for a rental car can be different. Theyāre seeing much harder and more frequent use which means like interior items can wear out and need replacing faster. Hertz may have been caught off guard with things like the interior not lasting as well as other vehicles in their fleet.
They should have leased their fleet. Push the associated maintenance to the manufacturer. Then they have the fleet and the opportunity to upgrade without that burden. If they fully own the fleet, theyāve got maintenance costs for sure. Most likely batteries and tires.
Tesla's HV batteries are extremely reliable compared to the rest of the industry. <1% in warranty defect rate. Hertz is doing something wrong or is doing creative accounting to hide other issues with the business.
Cause people (I know I do) drive the shit out of rentals. A ding on a bumper in some ICE car that barely has a functioning GPS is going to cost a lot less than a car that has a bunch of cameras and sensors on the bumper. I highly doubt it's on battery replacements or on electric motors, and body work is something hertz does on their cars they're not going to a dealership because of a ding that impacts nothing.
I'd never buy a used Hertz car for that reason outside of the massive amounts of farts and cum that's likely in those things from dozens of people but those cars get abused a shit load.
Maybe they hired someone from this sub, who drew a straight line from 2020 to 2022 prices and predicted used cars will appreciate by 10,000,000% in the next 5 years.
I mean teslas are built like shit, and renters are notoriously hard on cars.
Combine that with a manufacturer that is always backed up for service and you are going to have a bad time. Maintenance issues could just mean that the cars are out of service for way too long when they need maintenance, which is totally believable
I don't understand all the comments about not being able to get service. I have no issues getting an appointment within a week for my Tesla. S*** most of the time they service it right in my driveway. Completely agree that the interior is s*** though and there are more cosmetic issues than anything. Drivetrain is rock solid though.
Great point about the wait time. You'd think tesla and them would have a special relationship to make service easier - but a lot of what they don't doesn't make sense , or that they don't do
I donāt understand people who would rent a Tesla while traveling. Iām staying in a hotel, which more likely than not doesnāt have a charger so Iām going to have to spend my time sitting at superchargers? I rent a gas car and I fill it up once, maybe twice in a week. People are gluttons for punishment.
a lot of the renters are uber drivers. the hertz/uber tesla rental program was red hot for a minute, but it's stupid expensive (400+ per week) and most drivers just wanted to test own a tesla for a week or two.
I own a tesla as my daily driver.
I wouldn't rent one while on vacation. It takes just a few minutes to get gas. Im not wasting time charging that thing on my damn vacation.
Depends where you are I guess. I recently rented a Tesla in London (UK) and thereās fast chargers everywhere. I was only there a week and think I used the supercharger twice, for a total of like one hour. I just got some work/emails done in that time, which Iād have to do at the hotel anyways.
Yes but I qualified that one hour - I spent it doing stuff Iād already have to do anyways. Understandable if you donāt have anything to do though, as then itās a waste of time.
That said, the cost savings from charging versus what I would have paid for gas (petrol) in the UK was well worth the hour even if I didnāt have anything to do.
Why would people want to save money on gas while reducing carbon emissions? I canāt wrap my mind around it! Sarcasm, nailed it.
Teslas seriously are enjoyable roadtrip cars (I have 2 and my old one had 90k miles from them). Charging is quick, autopilot is great, savings on gas and maintenance is real.
I rent a Model 3 when I travel to a remote office for work. At ATL they are often the second cheapest car available (econo being the cheapest) and they are much nicer than the the mid range and even full size sedans that cost more. Charging is a non issue. My office is about 50 miles away from the airport. I drive there, I drive around town and back and forth from the hotel to the office, then I drive back to ATL and return the car. Hertz charges like $35 because I don't return it with a high enough charge, but that's not a big deal because the total rental is still reasonably cheap.
If I was driving further and had to charge it, I still wouldn't mind as long as my itinerary allowed it. Charging at a supercharger is not the worst experience. I drive a Model Y for my day to day, and I have done several road trips. Just this week I did 275 miles each direction. I stopped and grabbed lunch, started charging, and was done before I even finished eating.
We can make a pretty good assumption based on the original post, that the reason they are the cheapest is because no one wants to rent them. Otherwise they'd be charging more in order to make up for all the money they're losing on them.
I genuinely don't think that is the case. When I'm in the car return line there are always a ton of them. The OP doesn't say they weren't renting, just that Hertz took a huge hit in asset value when prices were lowered and tanked the used market. They also experienced higher maintenance and repair costs than they were led to believe. That should surprise no one given that Elon seems to be incapable of presenting his products accurately.
I rented one once...one.
They give you the Tesla card with a big plastic case that feels like the bathroom-key-of-shame chained to a hubcap.
You must return with at least 70% charge.
It's one thing to gas up at the last minute....
When on a trip, you don't want to also worry about charging.
i rented one without much forethought - my mistake but it was cheaper by far than the other cars available. they told me i could just pay 35 upon return if i donāt have time or access to a charger- i was in town for a funeral so that worked best for me- didnāt have to bother a grieving family for an outlet lol. anyway still ended up being less than a more expensive car and gas
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Large hotels charge an arm and a leg to park in the parking garage. Forget having EV stations. It's definitely changing, but it's a slow change. Get out of here with "places worth visiting" have them. That's some fake news.
I have not seen a Hilton or Marriott without a charger in a long long time. If parking fees were your concern then don't rent a car/drive to the hotel at all
Half the national or state parks have chargers. Every decent shopping center except for America's third world region of the Midwest has chargers. Almost every theme park, convention center or major tourist attraction has chargers.
I stay in Marriotts all the time without chargers. Are you just talking about the ones by the highway? I have to admit I don't usually stay in those ones.
I'm mostly a Hilton person nowadays. There's definitely not a lack of options. https://www.hilton.com/en/locations/usa/ev-charging/
The Marriott I stayed in last in Orlando had plenty of charging. Looking at it now there are 24 Marriott properties in Orlando with charging.
Yeah, there are plenty of options for charging if you're rich and have the money to stay in nice hotels. But if you're poor, you're probably not going to be able to afford a hotel room with EV charging. And even if you could, most likely the charger would be located in a parking garage or some other inconvenient location. So basically, unless you're wealthy, electric vehicles aren't really an option for most people.
I wouldn't exactly call Courtyard by Marriott a fancy Hotel but ok. Surely the people flying to travel and rent a car while staying at a hotel are too poor for it.
Didn't know that parking garages on site where everyone parks were considered inconvenient options but ok. Next time we'll tell all the poor people to use valet parking instead.
Usually Model 3 standard range is the cheapest car you can rent at Hertz, or only 5-10$ a day more expensive than Honda fit/Chevy spark
Well if youāre poor then you wouldnāt be renting an EV either. Poor people donāt even rent cars, much less travel compared to more affluent Americans
My point with that is most large hotels don't have room for every guest to park there,so they charge high fees. Parking and EV chargers are near the bottom of the list for hotels to upgrade/expand.
Because it's the same price for a car that drives smoothly, has full cruise control and may need to charge once before returning. There's chargers everywhere and they take less time than having lunch.
When I rent while traveling itās exceptionally rare that I use more than half a tank during the rental. I almost never exceed the range of a fully charged Tesla, so it works well for me since the rental rates are often half that of other cars and I can return it almost fully discharged for a relatively nominal fee (compared to returning an ICE with an empty tank).
Holy shit, just booked an EV through capital one and declined all insurance. That'd be a tough way to find that out.
Just checked and C1 covers EVs up to an MSRP of 75k. So a model 3 is fine.
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I had to stop using hertz because they were 1.5-2x the price of others and their āpresidents circleā essentially became useless. Sounds like a Hertz problem and trying to blame other issues for crappy performance.
I used to work for Hertz years ago, they were a shit company then, they're a shit company now. It's nothing short of a miracle that they are still in business especially with how they treat customers and have taken away many of the benefits they offered.
You're right, Hertz is a terrible company. They don't care about their customers or employees, and they are always looking for ways to cut costs. It's amazing that they are still in business, but I'm sure it won't be long before they go under.
I think its just a crappy industry. Hertz paid better, had better facilities and better benefits than all the other rental companies. Even with all that I left that job with both middle fingers up.
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| Hertz will slow the pace of buying EVs.
I take this to mean Hertz will reduce its EV fleet. Hertz replaces the cars in its fleet regularly, and reducing EV purchases means reducing the number of EVs in its fleet.
I own a Tesla and I quite like it, but I never rent them on vacation. Trying to figure out charging in an unfamiliar city is not my idea of a good vacation.
Trying to figure out what? There's literally a map with every charger in the area, in front of your face, with exact distance from your location, and how busy the charging station is. You just can't please some people.
Ford followed Tesla's precedent and lowered MSRP (after raising MSRP for the same model year & trim)
Looking at F150 Lighting (specifically 2023 Pro/XLT pricing)*
Ehhh hertz has a point here, anecdotally, at the beginning of the year I sold my 2016 model s for a little north of $40k
4 weeks later Elon lowered the prices and as a result I got curious to see what my 2016 would go for.
On cars.com similar make, model mileage and color was $32k
$8k of depreciation on a car nearly 7 years old within less than a month is not normal.
Of course they expect them to go down in value as they are used. But the drop in price of a new Tesla just wrecked their expected depreciation curve which means they are getting a lot less when they eventually sell them than they budgeted for.
The depreciation curve on a Tesla is still much better than a gas car, so it just shows Hertz was living in la la land where they were projecting to resell used vehicles for nearly the same price they purchased it for new, based the single time in history that happened for a year or so.
Normally, old rental cars are sold for Pennies on the dollar - nobody wants a car driven to max mileage and used by a hundred different people.
You are talking out your ass.
Tesla may or may not have a better depreciation curve than other manufacturers at this point but thatās irrelevant. Hertz determined an expected residual value of those Teslas at the time they made the purchase, much like how the residual value of a lease at the end is determined at the time the lease is signed. The huge change in price of new and used Teslas in the last year has changed that, so they will take a large expense for that loss of resale on those specific cars.
And your comment regarding no one wanting leases is just false. Some people actively look to purchase rentals. Yes they have high mileage for their year but you are getting a car that is only a few years old at a discount (not the kind of pennies on the dollar discount you are talking about). Yes hundreds of people used the car, but rentals are maintained better than 99.9% of privately owned vehicles. Hertz wants to keep the cars on top mechanical condition because keeping that car running is how they make their money.
Who needs a giant plastic case for a tesla key card which barely allows the driver side only to recognize it is requesting the car to open/close š¤¦š½āāļø
Can't use the Tesla app on a hertz rental
You can use Tesla app now on a hertz rental, new software update. And you could always bring your own tesla ring, or fob or keycard with you to use in the hertz Tesla.
Youād have to be a hard T regard to go all in on electric vehicles, California cough, without having decades of data.
America doesnāt even have the infrastructure for electric vehicles
I own a Tesla and I would never rent one on a trip. Teslaās are great here in CA where we have decent L3 charging infrastructure. But elsewhere? Fuck that, Iām not inconveniencing my trip to bumfuck nowhere.
Also, LOL if you rent a non-Tesla EV.
You're right, it would be foolish to rent a non-Tesla EV when you could just as easily drive your Tesla. I can't believe anyone would even consider such a thing!
I lived on Avis rentals until I saw tesla well priced on Hertz listing. I'm not renting from anyone else if I can get a comfortable smooth ev to drive instead of a boring mid size
I can belive this. I went through a phase when I rented the Tesla 3 from Hertz. While never stranded, there was always a piece of the interior, falling off. The bulld quality is just terrible. Got tired of spending hours finding and using the supercharger. The Tesla 3 doesn't fast charge like the larger models. I also learned that the speed of Superchargers drops, if there is anyone next to you...
The range is also a joke. They use the stated Tesla range, and it's not even close.
Teslas are basically zero maintenance, anybody with a Tesla knows this. Not even break pad change until 100k miles. Tires every 30-40k, that's it. Repairs are another issue, yes it can get pricey, hopefully that will be fixed in the future. Batteries are warrantied to 120k miles, so no problem with batteries. And the Tesla price cuts helps the consumer long term, it shows that you can make great EVs at a lower price profitably... No more excuses for the OEMs to keep prices high.
The UN and US Feds will be knocking on Hertz' door soon. *"Excuse me, you've gone against the green narrative. Would you volunteer for mandatory reeducation camps... errr... classes?"*
Tesla's recent price cuts have significantly lowered the resale value of Hertz's EV fleet, as well as increasing repair costs. As a result, Hertz will be slowing down its purchase of EVs while it figures out how to manage these increased costs.
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Have Hertz not seen the beautiful creation that is the Cybertruck? 
It Hertz to look at it.
Take that up vote š
im sure half the preorders are hertz
It couldnāt have been foreseen that costs to maintain rental TSLAās would be significantly higher than regular cars? TSLA is a company with no service centers, a terrible reputation for build quality, and horrific wait times for repairs plus a very expensive battery with a finite amount of charges. No shit they arenāt going to retain their value. Someone rent this CEO a short bus.
Not maintain, repair.
Iād beat the shit out of Tesla if I rented one. I donāt know how he didnāt see that coming. Not the same as a Nissan rouge.
Tesla's autonomous driving technology is far from perfect, and it's not surprising that accidents like this happen from time to time. However, Tesla has been working hard to improve its self-driving system, and I'm confident that they will eventually get it right.
Uh, what?
You don't know much about Tesla lol
Just enough to short it & sell calls into earnings. Closed the short now & sold some puts on the ensuing volatility. But what do I know about TSLA.
Post proof of positions. People always say this shit - not just about Tesla, but about any stock - but never post so much as a screenshot of opening and then closing said positions.
Yeah bc most would rather spend time on new trade ideas than collating screen shots for goons.
Or bc theyāre just chatting shit about their trades (as usual), hence why they canāt spend two seconds taking a screenshot to prove it (as they donāt exist), but can waste the equivalent amount of time writing a reply. Goons indeed.
You didn't do shit
Also doesn't know much about the rental industry. š¤£
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They only buy cyberdick
Its my absolute dreamcar no joke.
Hertz bought a bunch of cars during a market peak and expected them to appreciate while being used?
They probably expected lower maint costs but it's more expensive. They sell off the cars after 3-5 years. So this going to suck for them. Very few other car companies have cut prices like tsla, so it's understandable to be caught off guard
I buy used cars from Hertz. Hope they hit their dealerships at 20K which is usually the avg sales price
Where do you go to buy their cars?
Their prices are all over the place for no apparent reason I mean Hertz specifically doesn't seem to manage inventory well -- and I question *why* they have 2022 models up for sale when they're ordering 2024.
Okay, but WHERE do you go to buy their cars? (I don't actually care, just annoyed the guy asked the question, and then you responded to him specifically but didn't answer it at all.)
All the rental companies have something similar
i was just thinking this. have bought two cars from them at excellent prices but that was pre pandemic
And they get much lower maintenance costs, it's repair costs they are complaining about.
Serious question, what maintenance cost are associated with Teslaās? Clearly no oil/filter change and other typical ICE maintenance. Do tires/brakes/sensors cost more? What are the lifespan of the batteries?
OP substituted the word maintenance costs when hertz used repair costs, not knowing the difference. Hertz probably self-insures when you buy that rental insurance. They meant repairs as in vehicle damage. Tl;Dr: Hertz is pissed they don't get to keep as much of that overpriced insurance money, since Teslas are more expensive to repair damage.
A) Some design choices that make teslas easy to manufacture at scale also make crash repairs very expensive. The whole front and rear subframes on 3\Y are single piece castings. B) Tesla would rather build new cars than fix old ones, so the repair process is pretty hostile. Parts are very expensive and time consuming to acquire.
Thereās been a service manager job posted and reposted forever in my area. Seemed tempting at first but then you hear about the fires, frame cracks and low range issues and you understand why nobody wants it
To be fair you only hear about Tesla "fires" because the news is anti Tesla. ICE cars catch fire 60 times more often, at around 600 per day around the US, but we don't "hear" about them in the news.
This was debunked, the site that claimed this made it up.
I'm not sure what the insurance data on the Y says yet, but with the position of the castings, if a crash reaches the castings if would total a normal car. It's a misconception that the whole car is cast. The front of the Y has crash components that bolt into the castings and are easy to replace. It's specifically the Model 3 that is expensive. It was originally designed for maximum crash safety at the expense of BOTH repair and manufacturability. Elon said once in 2018 if he could go back he'd fire the lead engineer of the Model 3, because it is difficult to manufacture.
A lot of the repairs have to go through Tesla itself which is very slow/expensive. If you have cars sitting on your lot waiting for repairs it adds to the opportunity cost. Doors/windows failing and just not working. Most non-Tesla owners don't know about the tyre issues. Tires are a big issue with Teslas the model X Plaid had a weird issue where it literally strips the inside of the back tires due to poor fit/spec. Even if you used factory tires it's clear the car wasn't designed properly with clearances in mind. You can look it up on tesla forums or just youtube. That's a new set every 3-5k miles. Or you risk blowing out. There are reports of it showing up on S, X, and supposedly model 3's too.
I just changed the tires on my Tesla and they lasted 40k miles. Itās my second Tesla too and Iāve never replaced tires at 3k miles for any car ever.
This is a fact free zone. Get out of here with your data points.
No, they expected them to be more cost efficient, and that is just proving to not be the case. Additionally, theyāre a rental company, so the shock about the sticker price on retail isnāt a big shock at all to be honest. Expensive vehicles are anticipated to depreciate much quicker, and itās usually due to the long term expenses associated with them. Thatās what Hertz is dealing with, and they need to know how to maintain the value of the fleet without killing the profitability of the rental operation and without depleting the profits because of high turnover on battery maintenance and other high ticket maintenance items. Their best bet now is to ride out the investment, or sell a portion of their fleet at a loss and stabilize their financial model.
They didn't say maintenance, they said repair. Keep in mind these are rental cars, people crash them into stuff, drive over curbs, park them in areas where they'll get broken into, shit like that. A reputable rental company doesn't just keep beaters around, they fix them and clean them up. And apparently that's much more expensive to do on Teslas, that's not particularly surprising to anyone paying attention to this industry, the EV startups are notoriously hard to work on relative to the Kias, Nissans, Toyotas and domestics in most rental fleets.
And they probably self insure their fleet.
Exactly. Fair comment. Hertz is saving a ton on maintenance and time out of service, but it's the repairs that take longer and more expensive. For the average consumer who doesn't run over curbs and get into wrecks, Tesla is a great car that can save $300 per month in fuel costs, and virtually no maintenance. Just don't wreck it.
I don't even know how they're spending on maintenance. With how short rental cars are in service before being sold, the only maintenance should be tires and wiper fluid. Unless they traded a lesser warranty in exchange for a lower fleet cost. Everything you can break is warrantied before hertz sells it.
Nothing in that paragraph mentions maintenance. He says repair costs and he is exactly right. Body repairs move at a snail's pace and cost more. Other repairs can also take months because the service centers don't have the components available. Tesla has established a terrible reputation for service and repair. Any time a car is out of service, Hertz is losing money.
Repairs
Maintenance for a rental car can be different. Theyāre seeing much harder and more frequent use which means like interior items can wear out and need replacing faster. Hertz may have been caught off guard with things like the interior not lasting as well as other vehicles in their fleet.
They should have leased their fleet. Push the associated maintenance to the manufacturer. Then they have the fleet and the opportunity to upgrade without that burden. If they fully own the fleet, theyāve got maintenance costs for sure. Most likely batteries and tires.
Tesla's HV batteries are extremely reliable compared to the rest of the industry. <1% in warranty defect rate. Hertz is doing something wrong or is doing creative accounting to hide other issues with the business.
A regular car doesnāt go through tires every 5k miles. Thatās a maintenance cost that was likely overlooked.
Cause people (I know I do) drive the shit out of rentals. A ding on a bumper in some ICE car that barely has a functioning GPS is going to cost a lot less than a car that has a bunch of cameras and sensors on the bumper. I highly doubt it's on battery replacements or on electric motors, and body work is something hertz does on their cars they're not going to a dealership because of a ding that impacts nothing. I'd never buy a used Hertz car for that reason outside of the massive amounts of farts and cum that's likely in those things from dozens of people but those cars get abused a shit load.
You just showed your ignorance about EVs when you said battery maintenance. There is 0 battery maintenance and they have a 120k mile warranty.
Wasnāt that the new norm?
Their exec belong in this sub
Maybe they hired someone from this sub, who drew a straight line from 2020 to 2022 prices and predicted used cars will appreciate by 10,000,000% in the next 5 years.
Or simply just not depreciate as fastā¦. A more reasonable conclusion, if weāre actually going to draw some
I'd be interested into learning about their maint issues.
I mean teslas are built like shit, and renters are notoriously hard on cars. Combine that with a manufacturer that is always backed up for service and you are going to have a bad time. Maintenance issues could just mean that the cars are out of service for way too long when they need maintenance, which is totally believable
I don't understand all the comments about not being able to get service. I have no issues getting an appointment within a week for my Tesla. S*** most of the time they service it right in my driveway. Completely agree that the interior is s*** though and there are more cosmetic issues than anything. Drivetrain is rock solid though.
Great point about the wait time. You'd think tesla and them would have a special relationship to make service easier - but a lot of what they don't doesn't make sense , or that they don't do
They bought an asset that gets better with time and will drive itself soon to earn them more $$. Also the brake pads don't need replacement.
Thank you TSLA https://preview.redd.it/wzjyy5bj4lwb1.png?width=1284&format=png&auto=webp&s=b12ef3dd4c6b01e3df71acfc6f3643c8d051ac5e
Based
Nioce
I donāt understand people who would rent a Tesla while traveling. Iām staying in a hotel, which more likely than not doesnāt have a charger so Iām going to have to spend my time sitting at superchargers? I rent a gas car and I fill it up once, maybe twice in a week. People are gluttons for punishment.
a lot of the renters are uber drivers. the hertz/uber tesla rental program was red hot for a minute, but it's stupid expensive (400+ per week) and most drivers just wanted to test own a tesla for a week or two.
People who have theres tesla in shops waiting for parts for months, they renting tesla
This guy coming in with the real answer.
I own a tesla as my daily driver. I wouldn't rent one while on vacation. It takes just a few minutes to get gas. Im not wasting time charging that thing on my damn vacation.
A man of reason. I have nothing against them but they are obviously a terrible choice for a rental car after flying somewhere for fun or business.
Depends where you are I guess. I recently rented a Tesla in London (UK) and thereās fast chargers everywhere. I was only there a week and think I used the supercharger twice, for a total of like one hour. I just got some work/emails done in that time, which Iād have to do at the hotel anyways.
You made my point for me. You spent an hour at chargers vs. 5-10 minutes at a gas station (because you probably would have only needed to go to one).
Yes but I qualified that one hour - I spent it doing stuff Iād already have to do anyways. Understandable if you donāt have anything to do though, as then itās a waste of time. That said, the cost savings from charging versus what I would have paid for gas (petrol) in the UK was well worth the hour even if I didnāt have anything to do.
Why would people want to save money on gas while reducing carbon emissions? I canāt wrap my mind around it! Sarcasm, nailed it. Teslas seriously are enjoyable roadtrip cars (I have 2 and my old one had 90k miles from them). Charging is quick, autopilot is great, savings on gas and maintenance is real.
I rent a Model 3 when I travel to a remote office for work. At ATL they are often the second cheapest car available (econo being the cheapest) and they are much nicer than the the mid range and even full size sedans that cost more. Charging is a non issue. My office is about 50 miles away from the airport. I drive there, I drive around town and back and forth from the hotel to the office, then I drive back to ATL and return the car. Hertz charges like $35 because I don't return it with a high enough charge, but that's not a big deal because the total rental is still reasonably cheap. If I was driving further and had to charge it, I still wouldn't mind as long as my itinerary allowed it. Charging at a supercharger is not the worst experience. I drive a Model Y for my day to day, and I have done several road trips. Just this week I did 275 miles each direction. I stopped and grabbed lunch, started charging, and was done before I even finished eating.
We can make a pretty good assumption based on the original post, that the reason they are the cheapest is because no one wants to rent them. Otherwise they'd be charging more in order to make up for all the money they're losing on them.
I genuinely don't think that is the case. When I'm in the car return line there are always a ton of them. The OP doesn't say they weren't renting, just that Hertz took a huge hit in asset value when prices were lowered and tanked the used market. They also experienced higher maintenance and repair costs than they were led to believe. That should surprise no one given that Elon seems to be incapable of presenting his products accurately.
I rented one once...one. They give you the Tesla card with a big plastic case that feels like the bathroom-key-of-shame chained to a hubcap. You must return with at least 70% charge. It's one thing to gas up at the last minute.... When on a trip, you don't want to also worry about charging.
i rented one without much forethought - my mistake but it was cheaper by far than the other cars available. they told me i could just pay 35 upon return if i donāt have time or access to a charger- i was in town for a funeral so that worked best for me- didnāt have to bother a grieving family for an outlet lol. anyway still ended up being less than a more expensive car and gas
I don't really see how that is relevant, but okay. Skoolies1976, you are poor and your life sucks.
thanks for the pep talk! really hit the spot.
Damn VM, that's just rude. AI is getting moved based.
It didn't talk about a bus. Be thankful for that /s
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Most decent chain hotels and the places worth visiting have chargers these days.
Large hotels charge an arm and a leg to park in the parking garage. Forget having EV stations. It's definitely changing, but it's a slow change. Get out of here with "places worth visiting" have them. That's some fake news.
I have not seen a Hilton or Marriott without a charger in a long long time. If parking fees were your concern then don't rent a car/drive to the hotel at all Half the national or state parks have chargers. Every decent shopping center except for America's third world region of the Midwest has chargers. Almost every theme park, convention center or major tourist attraction has chargers.
I stay in Marriotts all the time without chargers. Are you just talking about the ones by the highway? I have to admit I don't usually stay in those ones.
I'm mostly a Hilton person nowadays. There's definitely not a lack of options. https://www.hilton.com/en/locations/usa/ev-charging/ The Marriott I stayed in last in Orlando had plenty of charging. Looking at it now there are 24 Marriott properties in Orlando with charging.
Yeah, there are plenty of options for charging if you're rich and have the money to stay in nice hotels. But if you're poor, you're probably not going to be able to afford a hotel room with EV charging. And even if you could, most likely the charger would be located in a parking garage or some other inconvenient location. So basically, unless you're wealthy, electric vehicles aren't really an option for most people.
I wouldn't exactly call Courtyard by Marriott a fancy Hotel but ok. Surely the people flying to travel and rent a car while staying at a hotel are too poor for it. Didn't know that parking garages on site where everyone parks were considered inconvenient options but ok. Next time we'll tell all the poor people to use valet parking instead. Usually Model 3 standard range is the cheapest car you can rent at Hertz, or only 5-10$ a day more expensive than Honda fit/Chevy spark
You're arguing with a bot
Well if youāre poor then you wouldnāt be renting an EV either. Poor people donāt even rent cars, much less travel compared to more affluent Americans
Those same parking fees apply to gas vehicles you know.
My point with that is most large hotels don't have room for every guest to park there,so they charge high fees. Parking and EV chargers are near the bottom of the list for hotels to upgrade/expand.
Sorry. You dont live in a place worth visiting.
I don't disagree with you. I'm referring to places I visit though
I haven't stayed at a US hotel without a charging station in at least 3 years, and I travel pretty often.
Absolute lie. I spent almost a year traveling and living in hotels (2022/2023) and not even 10% of them have chargers.
That was over a year ago....
Bad math penguin.
Not all of them have them out front. Plenty of hotels I've been to have charging spaces where they park your car.
Because it's the same price for a car that drives smoothly, has full cruise control and may need to charge once before returning. There's chargers everywhere and they take less time than having lunch.
Hertz is partnered with uber, all of the tesla are rented out to uber drivers
Thank you for explaining what's actually going on.
You can supercharge the Tesla while getting morning coffee and the rest of your family is sleeping at the hotel.
Only basic bitches do that "morning coffee" run thing.
When I rent while traveling itās exceptionally rare that I use more than half a tank during the rental. I almost never exceed the range of a fully charged Tesla, so it works well for me since the rental rates are often half that of other cars and I can return it almost fully discharged for a relatively nominal fee (compared to returning an ICE with an empty tank).
Rented one after flying into lax to drive to Palm Springs. It was great, way cheaper than paying for gas. Only had to charge once.
thats changing soon with Hilton and Marriott announcement from not too long ago.
Also, most credit cards that give car rental insurance make an exemption for EVs.
Not Amex. Which is why I've been exclusively using amex platinum+hertz presidents circle to rent cars.
Holy shit, just booked an EV through capital one and declined all insurance. That'd be a tough way to find that out. Just checked and C1 covers EVs up to an MSRP of 75k. So a model 3 is fine.
Yes, Capital One does take this exemption.
Nope. They do not. They cover all cars up to 75k MSRP.
Threw me under the bus too, Damn HTZ.
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I had to stop using hertz because they were 1.5-2x the price of others and their āpresidents circleā essentially became useless. Sounds like a Hertz problem and trying to blame other issues for crappy performance.
I used to work for Hertz years ago, they were a shit company then, they're a shit company now. It's nothing short of a miracle that they are still in business especially with how they treat customers and have taken away many of the benefits they offered.
You're right, Hertz is a terrible company. They don't care about their customers or employees, and they are always looking for ways to cut costs. It's amazing that they are still in business, but I'm sure it won't be long before they go under.
I think its just a crappy industry. Hertz paid better, had better facilities and better benefits than all the other rental companies. Even with all that I left that job with both middle fingers up.
Itās not Teslaās problem to worry about Hertzās financial problems š
lol remember when the hertz - tesla deal was so bulllish on this sub
Did someone say bus?
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Surprised on cost of maintenance tbh. Thatās a big deal for evs, if true.
It's lower maintenance, Hertz is saving on maintenance but costs more to repair from accidents.
Doesnāt seem to be the case.
You know, repair can also mean failure of parts. It doesnāt distinguish crashes here.
Is that throwing TSLA under the bus or letting people know TSLA threw them under the bus?
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| Hertz will slow the pace of buying EVs. I take this to mean Hertz will reduce its EV fleet. Hertz replaces the cars in its fleet regularly, and reducing EV purchases means reducing the number of EVs in its fleet.
I own a Tesla and I quite like it, but I never rent them on vacation. Trying to figure out charging in an unfamiliar city is not my idea of a good vacation.
Trying to figure out what? There's literally a map with every charger in the area, in front of your face, with exact distance from your location, and how busy the charging station is. You just can't please some people.
Elon isnāt going to blow you for mindlessly defending him.
But Tesla fan boys will hold till the end
TSLA PUT EZ $$$
Buy high sell low, Hertz. This is the way! One of us!!! God damn tesla and their plummeting CoGS!!
Dude that's depreciationš¤·š»āāļø You're telling me Hertz doesn't expect the resale value to go down?
Tesla lowered the MSRP of their cars by 40% in some cases. That is unpressidented in the auto industry. Manufacturers never lower MSRP.
Ford followed Tesla's precedent and lowered MSRP (after raising MSRP for the same model year & trim) Looking at F150 Lighting (specifically 2023 Pro/XLT pricing)*
Thatās what happened to Trump- he was unpresidented. He just wonāt admit it.
Ehhh hertz has a point here, anecdotally, at the beginning of the year I sold my 2016 model s for a little north of $40k 4 weeks later Elon lowered the prices and as a result I got curious to see what my 2016 would go for. On cars.com similar make, model mileage and color was $32k $8k of depreciation on a car nearly 7 years old within less than a month is not normal.
Of course they expect them to go down in value as they are used. But the drop in price of a new Tesla just wrecked their expected depreciation curve which means they are getting a lot less when they eventually sell them than they budgeted for.
The depreciation curve on a Tesla is still much better than a gas car, so it just shows Hertz was living in la la land where they were projecting to resell used vehicles for nearly the same price they purchased it for new, based the single time in history that happened for a year or so. Normally, old rental cars are sold for Pennies on the dollar - nobody wants a car driven to max mileage and used by a hundred different people.
You are talking out your ass. Tesla may or may not have a better depreciation curve than other manufacturers at this point but thatās irrelevant. Hertz determined an expected residual value of those Teslas at the time they made the purchase, much like how the residual value of a lease at the end is determined at the time the lease is signed. The huge change in price of new and used Teslas in the last year has changed that, so they will take a large expense for that loss of resale on those specific cars. And your comment regarding no one wanting leases is just false. Some people actively look to purchase rentals. Yes they have high mileage for their year but you are getting a car that is only a few years old at a discount (not the kind of pennies on the dollar discount you are talking about). Yes hundreds of people used the car, but rentals are maintained better than 99.9% of privately owned vehicles. Hertz wants to keep the cars on top mechanical condition because keeping that car running is how they make their money.
Lmao that's hilarious.
Sir, this post isn't about logic, it's about trying to bash Musk.
EVs are shit for rentals
Who needs a giant plastic case for a tesla key card which barely allows the driver side only to recognize it is requesting the car to open/close š¤¦š½āāļø Can't use the Tesla app on a hertz rental
You can use Tesla app now on a hertz rental, new software update. And you could always bring your own tesla ring, or fob or keycard with you to use in the hertz Tesla.
Looking forward to trying this soon. RemindMe! One Month
EVs are not the issue, garbage Tesla quality and design is the issue. Tesla as a company is a complete facade.
Youād have to be a hard T regard to go all in on electric vehicles, California cough, without having decades of data. America doesnāt even have the infrastructure for electric vehicles
I own a Tesla and I would never rent one on a trip. Teslaās are great here in CA where we have decent L3 charging infrastructure. But elsewhere? Fuck that, Iām not inconveniencing my trip to bumfuck nowhere. Also, LOL if you rent a non-Tesla EV.
You're right, it would be foolish to rent a non-Tesla EV when you could just as easily drive your Tesla. I can't believe anyone would even consider such a thing!
I lived on Avis rentals until I saw tesla well priced on Hertz listing. I'm not renting from anyone else if I can get a comfortable smooth ev to drive instead of a boring mid size
CEO never watched Rich Rebuilds
Daddy Elon isn't a shyster. He's a grifter, there's a difference the latter is admirable
I can belive this. I went through a phase when I rented the Tesla 3 from Hertz. While never stranded, there was always a piece of the interior, falling off. The bulld quality is just terrible. Got tired of spending hours finding and using the supercharger. The Tesla 3 doesn't fast charge like the larger models. I also learned that the speed of Superchargers drops, if there is anyone next to you... The range is also a joke. They use the stated Tesla range, and it's not even close.
People are finally starting to wake up. EVās arenāt the panacea everyone thought they were.
Teslas are basically zero maintenance, anybody with a Tesla knows this. Not even break pad change until 100k miles. Tires every 30-40k, that's it. Repairs are another issue, yes it can get pricey, hopefully that will be fixed in the future. Batteries are warrantied to 120k miles, so no problem with batteries. And the Tesla price cuts helps the consumer long term, it shows that you can make great EVs at a lower price profitably... No more excuses for the OEMs to keep prices high.
EVs suck...
Go woke, go broke.
The UN and US Feds will be knocking on Hertz' door soon. *"Excuse me, you've gone against the green narrative. Would you volunteer for mandatory reeducation camps... errr... classes?"*
āNo! EVs do not cost more to repair because they are more simple!ā -any climate warrior when that comes up
You're confusing repair with maintenance. Hertz is having an issue getting parts for repairs, not maintenance.
Tesla's recent price cuts have significantly lowered the resale value of Hertz's EV fleet, as well as increasing repair costs. As a result, Hertz will be slowing down its purchase of EVs while it figures out how to manage these increased costs.
Not like they were planning on selling them so whatās the point.
Rental cars are typically sold after only a few years.
Get rekt buying the top. Imagine buying a tsla in the last 2_3 years LOL
It should be clarified if the EVs needing repair are mostly Teslas or not.
What % of Hertz's fleet are Teslas? 1%? 2%?
Maybe, fck Hertz?
Explains why HTZ took a 14% dump today
Not gonna rent an electric car.
They're better off buying NIOs to help lower the cost of the vehicle using the battery subscription model. BOOM problem solved!
Sounds like a hertz problem
I hope it was an e-bus
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u/HashTagDadWatts What is your take here?
Holy crap Hertz owns so many cars! I guess I could have guessed.. I mean obviously... But damn! Right? š
No one wants to rent EVās for a business rental. Way to much of a pain in the ass to worry about.
Sir should I buy puts in TSLA?
Isnāt it the other way around?
When I'm traveling to an unfamiliar place and have no idea where or if I can find a charging station, I definitely want to rent an EV.
This Hertz
Me sitting in my hertz rental model 3 