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Consider that normally rental car companies get steep discounts on their bulk buys. They didn’t with their Tesla order which further hurts them. But, here is
by alemanek 3y ago
Consider that normally rental car companies get steep discounts on their bulk buys. They didn’t with their Tesla order which further hurts them. But, here is the overly simplified normal math:
(Resale Price + Rental Income - Maintenance - Purchase Price) / 2 years
Trick is that they generally flip these vehicles after 2 years and upsell an auto warranty which a big profit center as well. Resale price tanks and there goes all their profit.
- bsder 3y agoI don't think "2 years" is valid anymore. It seems like the rental companies are hanging onto their cars for closer to 5 years, now. This would also link into their "extra damage" problem.
- technetist 3y agoI mean the Hertz/Tesla deal only started end of 2021 [1] and less than half of the ordered fleet was available by end of 2022 [2]. It’s kind of disappointing if they are getting noticeably beat up after a year. [1] https://apnews.com/article/business-lifestyle-travel-car-rental-mark-fields-0da1c7ac07d45682cf101077b62988ab https://apnews.com/article/business-lifestyle-travel-car-ren... [2] https://electrek.co/2023/02/08/hertz-half-massive-tesla-order-100000-electric-cars/ https://electrek.co/2023/02/08/hertz-half-massive-tesla-orde...