Hertz wants to shift some of its all-electric inventory and, after a $1.3 billion loss in Q3 and a $1 billion impairment charge due to the lost value in its EV fleet, it can’t do it soon enough. However, Hertz’s missteps in the EV market could be a win for you (or a friend), as the rental car giant is clearing out older EVs for under $20,000—and in many cases, for less than $15,000.

More: Hertz In A Hole After EV Gamble, Will Sell 30,000 EVs By Year’s End

On the surface, these discounts might seem tempting, but as always, the devil’s in the details. As of this writing, Hertz has over a dozen Teslas on sale for under $30,000. The vast majority sit below $25,000, and four are beneath $20,000. The deals appear to be in that middle ground though.

High Mileage, High Risk

For instance, among the cars under $20k, all have over 120,000 miles on the odometer. That places them well outside Tesla’s 8-year/100,000-mile limited warranty for the battery and drive unit (for RWD models). What might look like a bargain at first glance could quickly spiral into an expensive nightmare if the battery decides to call it quits. Battery replacements for EVs and PHEVs are notoriously expensive. Proceed with extra caution, as we’ve heard that battery replacements for the RWD Model 3 typically start at $13,000.

A Question of Value

The sweet spot in Hertz’s clearance fleet seems to be Teslas priced between $20,000 and $25,000. Many of those have around 60,000 miles and some have as little as 27,583 miles. These cars should still fall within Tesla’s battery warranty, but you’ll want to verify specifics before signing on the dotted line. In addition, Hertz sells them with a 12-month, 12,000-mile powertrain warranty. Elon Musk might think that a $25,000 Tesla is “pointless” but we see some value in these used examples.

Why A New Tesla Might Be Smarter

Above that point, however, and especially when you hit the $30,000 price mark, you might be better off just getting a new one if you qualify for all federal and state tax rebates. These incentives vary based on your location, income, and vehicle choice. For instance, in Massachusetts, qualifying buyers can benefit from the $7,500 federal tax credit combined with an additional $3,500 state EV rebate (both subject to income and MSRP limits) for a total of $11,000 in savings.

On top of that, Tesla is currently offering a 0% APR financing deal for up to 60 months with a minimum down payment of 20%—and the $7,500 federal tax credit can be applied upfront, if eligible.

This means you could drive away in a brand-new Tesla Model Y Long Range for $37,000 before taxes and fees, not to mention paying most of it off with zero interest over 60 months. Compare that to Hertz’s offer of a 2022 Tesla Model Y Long Range with 46,883 miles priced at $29,364 before taxes and fees, and the decision becomes a bit more nuanced. Depending on your circumstances, the price gap may justify going for new over used—or at least give you pause before committing to Hertz’s clearance inventory.

Budget EVs Galore

Should one not love the idea of picking up a used Tesla, Hertz has a few other inexpensive EVs on offer. There are so many Chevrolet Bolts that it’s impossible to pick just one out of the crowd of over 100. The good news is that just about any trim or options are available. Most of them are on offer for under $15,000 too.

That’s not all though. For those with a taste for something a little more upscale, Hertz also has some Volvo C40 Recharge models for under $30,000 with under 20,000 miles in most cases, and several Mercedes-Benz EQBs with under 15,000 miles for less than $30,000 too.

Don’t feel convinced yet? For the true bargain hunters, how about two Hyundai Kona Electric crossovers priced under $13,000 right now? Sure, they have over 100,000 miles each but they could also qualify for tax credits too. The deals are out there right now for interested parties. 

Due Diligence Required

The bottom line? Hertz’s loss could be your gain, but it’s crucial to tread carefully and do your homework, particularly when it comes to battery warranties. These cars might save you money upfront, but as with any used vehicle—especially an EV—future maintenance and battery life should weigh heavily in your decision. Deals like these can feel like a steal, but only if you know exactly what you’re buying into.

Additional reporting by John Halas

Hertz’s third-quarter financial results released this week show it’s still reeling from its decision to bet big on EVs. Heavy depreciation on its fleet of electric cars – and ICE models – played a major role in Hertz reporting a net loss of $1.33 billion, compared with a $629 million profit in Q3, 2023, news that sent its share price even lower.

Tesla’s Price Cuts and EV Depreciation

The rental giant splashed out on EVs a few years ago, purchasing around 100,000 Tesla Model 3s and following up with another substantial order for Model Ys without knowing that the value of those cars would soon fall far below predicted levels. Electric cars in general have proved to be more depreciation-prone than combustion-powered vehicles, but Tesla CEO Elon Musk had a role to play in Hertz’s misery when he cut the price of new Teslas, lowering the value of the company’s fleet.

More: Hertz Selling Its Shelby Mustang Mach-E Fleet For A Price That’ll Short-Circuit Your Wallet

But Hertz’s ICE cars must shoulder some of the blame. They’ve also suffered heavy depreciation because some were bought during the semiconductor crisis when vehicle production was limited and prices were high. The agency’s Q3 results include a $1 billion impairment charge related to its fleet’s lower value.

The EV Sell-Off

In an effort to stem the bleeding, Hertz has been offloading EVs en masse. The rental company plans to offload around 30,000 EVs by the end of 2024. Most of these vehicles are expected to be Teslas, and their arrival on the used market has put further downward pressure on resale values, compounding the depreciation problem for both Hertz and the broader EV market.

As reported by Bloomberg, the sell-off is part of a broader plan to align its EV fleet to a number that its customers want to rent. The company expects to complete this fleet overhaul by the end of 2025, but until then, monthly depreciation costs remain sky-high at $537 per vehicle—nearly double the $284 average from Q3 2023. Hertz hopes to reduce that figure to $300 in the coming years, but for now, it’s another sore spot on a balance sheet full of them.

When asked how many EVs are currently in its fleet and how many more it plans to sell, a Hertz spokesperson told Carscoops: “We have not publicly specified the exact number of EVs in our fleet, but as we’ve previously said, we’re rightsizing our EV fleet to better meet customer demand.”

More: Hertz Staff Abandon Post, So Customers, Including Denver’s Mayor, Drive Off In Anything With Keys

Fleet depreciation wasn’t the only bad news in Hertz’s Q3 report. Its core rental business also underperformed, revenue of $2.6 billion being 5 percent less than analysts expected. Hertz’s stock price is down 68 percent this year, and fell 12 percent when the third-quarter numbers dropped.

“There is still work to be done,” said Hertz CEO Gil West. “But I am confident that the enhancements achieved over the course of this quarter demonstrate that we are on the right track.”

Correction: An earlier version of this article incorrectly stated that Hertz would sell an extra 30,000 EVs, making 60,000 in total. The correct number is 30,000 EVs in total by the end of 2024. We apologize for the mistake.