In the midst of the message of moving towards the energy transition and seeking clean energy, the car rental giant, Hertz, removed 20,000 electric vehicles from its fleet, including Teslas.
The company justified that this type of units have little demand and represent high repair costs.
In this regard, analysts and industry experts believe that the measure will affect the second-hand electric vehicle market and deter buyers who are already reconsidering large purchases due to higher borrowing costs.
“The biggest impact of Hertz’s electric vehicle liquidation is the perception of the technology (…) Traditional consumers are already hesitant to buy an electric vehicle, and this news only supports their concerns,” said Karl Brauer, iSeeCars.com analyst.
The higher costs associated with repairing electric vehicles are due to a lack of experience operating such vehicles and challenges in sourcing replacement parts since they are still very new, industry experts said.
Hertz CEO Stephen Scherr noted at a conference last year the high costs caused by damage to certain electric vehicles, particularly Teslas.
Scherr said Hertz limited the speed of electric vehicles and offered them to more experienced users to ensure easier trips after certain renters suffered head-on collisions.
Electric vehicles have faced more problems than gasoline cars, according to a survey conducted last year by Consumer Reports, a nonprofit organization.
According to the survey, which covered responses from owners of more than 330,000 vehicles, it showed that electric vehicles in the last three years had 79 percent more problems than conventional cars.
Electric vehicle sales growth in North America is expected to slow by about 27 percent this year from a scorching 72 percent in 2023, according to market research firm Canalys.
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Hertz may have to get rid of deeply discounted electric vehicles due to the higher miles they have covered, as well as visible damage such as chips, scratches and dents.
Almost all of the more than 500 used electric vehicles the company has for sale are Teslas, and some Model 3 compact sedans are listed at $21,000, half the price of a new car and up to $10,000 less than high-mileage cars. .
2024-01-20 08:00:00
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