canyonwalker (![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png)
canyonwalker) wrote2024-01-12 09:42 pm
canyonwalker) wrote2024-01-12 09:42 pm
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Hertz selling off 20,000 rental EVs to buy more ICE
It's in the news the past few days that Hertz is selling off 20,000 EVs from its rental fleet and using the proceeds to buy internal combustion engine (ICE) cars instead. Example news coverage: Reuters article Jan 11, USA Today article Jan 11.
Many people, particularly those on the political right, jeer at this headline as proof that "consumers don't want EVs". Sure, part of Hertz's rationale for this could be lack of consumer demand. That's plausible... but it turns out it's not accurate. Most fact-based articles on the issue report that Hertz has explained the move in terms of costs. Hertz found the EVs, especially the Tesla models which composed most of their EV fleet, were on average twice as expensive to repair when damaged as comparable ICE vehicles. Moreover, the Tesla EVs took a huge depreciation hit over the past year as Tesla aggressively cut the price of its new vehicles. The difference between purchase price and resale price is huge for rental companies as their business model entails buying new cars, preferably at a steep discount, and selling them off after 1-3 years.
But is there also an issue of consumers not wanting to rent EVs? I wouldn't be surprised if there is... because as a consumer who rents cars about once a month on average, I have steered away from renting EVs.
I'm not politically opposed to EVs. I don't think Joe Biden and/or some global cabal dedicated to overthrowing Truth, Justice, and the American Way is trying to cram them down our throats. I'm not out there "rolling coal" with dual smokestacks on my gas-guzzling gussied-up grocery-grabber.
My caution around EVs is purely practical. Where will I recharge it? How far out of my way will I have to go in a place I'm already probably not familiar with? Will I have time in my travel schedule to sit at recharging stations? How much, and how, will I pay at recharging stations? When I helped a friend drive an EV 500 miles on a road trip I found that if you have to pay market prices at a charging station it's expensive.
FWIW these are all concerns when owning an EV as well. Though when renting they're even more of a challenge because I'd have to figure these things out just for a short trip— and in an unfamiliar area, and without the fallback of charging at home. That's kind of a shame because it seems like renting an EV is a good way to dip one's toes into the waters of owning an EV, learning the ropes of driving an EV before committing serious money to buying one. Alas I don't think it's practical to rent an EV on a trip unless 1) I had time to plan up front where/how/when I'd recharge, and 2) the rental company provided some kind of membership plan for cost-effective charging. And that's why I've considered, but have consistently steered away from, selecting an EV when renting from Hertz and other companies over the past year.
Many people, particularly those on the political right, jeer at this headline as proof that "consumers don't want EVs". Sure, part of Hertz's rationale for this could be lack of consumer demand. That's plausible... but it turns out it's not accurate. Most fact-based articles on the issue report that Hertz has explained the move in terms of costs. Hertz found the EVs, especially the Tesla models which composed most of their EV fleet, were on average twice as expensive to repair when damaged as comparable ICE vehicles. Moreover, the Tesla EVs took a huge depreciation hit over the past year as Tesla aggressively cut the price of its new vehicles. The difference between purchase price and resale price is huge for rental companies as their business model entails buying new cars, preferably at a steep discount, and selling them off after 1-3 years.
But is there also an issue of consumers not wanting to rent EVs? I wouldn't be surprised if there is... because as a consumer who rents cars about once a month on average, I have steered away from renting EVs.
I'm not politically opposed to EVs. I don't think Joe Biden and/or some global cabal dedicated to overthrowing Truth, Justice, and the American Way is trying to cram them down our throats. I'm not out there "rolling coal" with dual smokestacks on my gas-guzzling gussied-up grocery-grabber.
My caution around EVs is purely practical. Where will I recharge it? How far out of my way will I have to go in a place I'm already probably not familiar with? Will I have time in my travel schedule to sit at recharging stations? How much, and how, will I pay at recharging stations? When I helped a friend drive an EV 500 miles on a road trip I found that if you have to pay market prices at a charging station it's expensive.
FWIW these are all concerns when owning an EV as well. Though when renting they're even more of a challenge because I'd have to figure these things out just for a short trip— and in an unfamiliar area, and without the fallback of charging at home. That's kind of a shame because it seems like renting an EV is a good way to dip one's toes into the waters of owning an EV, learning the ropes of driving an EV before committing serious money to buying one. Alas I don't think it's practical to rent an EV on a trip unless 1) I had time to plan up front where/how/when I'd recharge, and 2) the rental company provided some kind of membership plan for cost-effective charging. And that's why I've considered, but have consistently steered away from, selecting an EV when renting from Hertz and other companies over the past year.