rental

Hertz to buy 100,000 Tesla cars as rental car company pivots toward electric vehicles

Having survived a brush with death, Hertz is aiming for an electric rebirth.

The rental car company, which filed for Chapter 11 bankruptcy protection early in the COVID-19 pandemic, announced Monday that it plans to buy 100,000 cars from Tesla by the end of 2022 in a pivot toward electric vehicles.

It is among the largest electric vehicle orders ever placed, matching the 100,000 electric vans that Amazon has ordered from startup Rivian. The deal is worth about $4.2 billion, estimated Wedbush Securities analyst Dan Ives.

Hertz also plans to install thousands of electric vehicle charging stations at its locations.

►Which is more expensive?: Charging an electric vehicle or fueling a car with gas?

►’It’s just draining’: Homebuyers frustrated by a cutthroat housing market are putting their searches on hold

The moves represent the largest investment by a rental car agency in technology widely considered the future of the

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How a perfect storm of shortages and rental car chaos sent used-car prices skyrocketing

Cars sit outside a used car dealership with spray paint on the windows advertising the vehicles.

Used car and truck dealers have bought models for more than their original sticker price. Jim Watson / AFP via Getty Images

  • Used-car prices have skyrocketed over the last year.

  • A supply crunch in new cars is spurring demand for used models.

  • Prices may not return to normal for at least a year, one expert told Insider.

  • See more stories on Insider’s business page.

If you’re looking to get a sweet deal on a used car to take advantage of the warm summer weather, it’s not going to happen.

The market for secondhand cars is absurdly and unprecedentedly hot right now. Used vehicles went for a whopping 40% more in June than they did before the pandemic in February of 2020, according to data from JPMorgan.

The average nine-year-old car changed hands for $13,250 in June, according to automotive research site Edmunds. That’s a 30% hike over the same

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Rental cars difficult to find in Colorado, nationwide

Matt Kelley lives in Denver and works for Major League Baseball, but he’s like people traveling to the Mile High City for the All-Star Game: He needs a car.

He and his wife went looking for a rental car earlier this week and found prices had shot up. Another issue people face is a limited supply. Try to reserve a vehicle online at Enterprise near Denver International Airport during All-Star week and you get “Sold Out Location” across the screen.

Kelley said cars were available at the Enterprise he tried. He and his wife have only one car, which isn’t usually a problem, but “we have lot of things going on.”

“So instead of trying to arrange a bunch of different Ubers, that sort of thing, we decided to rent a car,” he added.

But Kelley went with a car sharing company when Enterprise quoted him $120 a day.

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Rental Companies Buy Up Used Cars as Chip Crisis Get Worse

The semiconductor shortage has slashed vehicle production so much that rental-car companies can’t get the new cars they need, so they have resorted to buying used vehicles at auction.

This is uncharted territory for the likes of Hertz Global Holdings Inc. and Enterprise Holdings Inc., which have made their profits by purchasing new vehicles cheaply in bulk, renting them out for as much as a year and selling them at auction. In the past, they have bought some used cars to shore up an occasional unforeseen burst in demand, but rarely for the mainstays of their fleets.

“You would never go into auction to buy routine sedans and SUVs,” said Maryann Keller, an independent consultant who used to be on the board of Dollar Thrifty Automotive Group, which is now part of Hertz. “These are special circumstances. There is a shortage of cars.”

The demand is sending used-car costs

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