buying Rental car companies should focus on trucks, not Teslas
Hertz orders 100,000 Teslas to electrify rental fleet, following bankruptcy
By the end of 2022, Hertz customers will have a heaping ton of Teslas to choose from.And it sounds like this fleet of Teslas is just the beginning: The 100,000 cars is an "initial order," Hertz said. The move could help the rental company pull ahead of rivals in the EV space for the time being. Tesla doesn't build millions of vehicles per year (it delivered 241,000 cars in the third quarter of this year), so it may be difficult for another company to counter with its own order, given Tesla's current production numbers. That's especially true with the current supply-chain crunch and semiconductor chip shortage.
Hertz has been in the news a lot lately. The companyduring the height of the coronavirus pandemic in May 2020, announced reorganization plans in March 2021 after two investment firms in the company, and then as its new CEO earlier this month. The news that's getting all the headlines now, though, is the company's purchase of 100,000 new from .
There'sthat ought to be and about that deal, but that's not what I want to talk about today. Instead, I'm wondering why we all seem content to do this vehicle buying versus vehicle renting thing completely backwards. By that I mean Americans are buying and SUVs at a greater clip than ever before, and while sales of plug-in vehicles are gaining momentum, they still represent only a small portion of the overall market.
Hertz Orders 100,000 Teslas for Its Rental Fleet
Hertz is buying 100,000 Teslas for its rental fleet, with the first vehicles due next month. Here's why this is a big deal for the auto industry. Tesla will supply Hertz with 100,000 cars before the end of 2022, in the single largest EV order for a rental giant, in what the company called an "initial order."Tesla's stock market value rose above $1 trillion for the first time on news of the massive order, one expected to be fulfilled with the help of Berlin and Austin factories.
I'm well aware that I'm not breaking any new ground by suggesting people who don't need gas-guzzlingand SUVs shouldn't buy them. I understand the appeal of trucks and SUVS, and I even have an old 1993 parked in my own driveway. I also know that Americans are going to buy and drive whatever they want (and can afford) to buy and drive, which means this whole argument is going to fall on deaf ears. Still.
Wouldn't it make a lot more sense to drive the hyper-efficient car on a daily basis and rent the big fullsize truck or SUV for those few times you actually need its capabilities?
To be clear, it's already possible to rent a pickup truck or SUV. A truck can be rented by the hour from places like U-Haul, Penske or Home Depot. Trucks and SUVs are. What I'm suggesting is that an enterprising company could make a business case out of catering to EV owners, offering attractive rates and possibly even partnering up with manufacturers looking to offer an extra incentive to buyers who choose to go electric. Launch it with fanfare, sort of like what took place when Hertz announced its Tesla buying spree alongside starring .
How Much Does it Cost to Charge an Electric Car?
When shoppers are considering the purchase or lease of an electric vehicle (EV), one of the first questions they ask is, "how much does it cost to charge?" While it's easy to answer that question for a gas-powered car by looking at its fuel economy and your gas station receipt, it gets a bit more complicated for an electric car. If you're charging from a home charging station, the cost of charging an electric vehicle is based on the vehicle'sIf you're charging from a home charging station, the cost of charging an electric vehicle is based on the vehicle's energy efficiency and the cost of electricity, which can vary greatly depending on where you're charging.
I'm all for companies like Hertz offering electric rental options and offering them to any customer that wants one, regardless of what kind of vehicle they have parked in their driveway at home. But what I'd like to see is a rental car agency put in a huge order for non-luxury fullsize pickup trucks and then offer them for reasonable rates to people who already own electric orvehicles. Having a well-publicized program to help would-be EV buyers transition from gasoline to electric may go a long way toward pushing hesitant shoppers over the edge, replacing their traditional truck purchase with an EV. And if that were the case, it'd be a much larger environmental victory than adding 100,000 Teslas to Hertz's fleet.
Even forgetting all about the idea of a company like Hertz focusing on truck rentals for EV owners, now might be a good time to point out that a specific marketing program isn't necessary. It's also worth pointing out that the fuel savings would be a boon for the wallet. A quick peek at theofficial website says a Mach-E will cost $1,826 less per year to charge and drive than a reasonably efficient . The same holds true of big SUVs and, to a lesser degree, V6-powered . That leaves quite a bit of money for a rental here and there while still realizing a hefty savings. And this savings chart doesn't factor in the purchase price (have you seen how much a decent four-door truck costs these days?), Or any potential tax incentives for EV buyers.
So there you go. It'll eventually be a moot point once reasonably pricedand SUVs are available in enough quantity to satisfy demand. But for now, park the efficient car with a plug in your driveway. Rent the big truck or SUV when you need it. It makes a lot more sense than doing it the other way around.
originally appeared on on Wed, 27 Oct 2021 14:11:00 EDT. Please see our terms for use of feeds.
Uber/Hertz Deal Will Put 50,000 Tesla Model 3 Rental Cars into Ride-Sharing Fleet .
Uber drivers can pay $334 a week to rent a Tesla from Hertz in a pilot program expected to expand across the U.S. by 2023. Uber has announced it is partnering with Hertz to offer 50,000 Tesla EVs as rentals for ride-sharing drivers over the next two years.The pilot program will start November 1 in Los Angeles, San Diego, San Francisco, and Washington, D.C., but will expand to other U.S. citiesHertz just agreed to purchase more than $4 billion for 100,000 Tesla Model 3 cars in a deal announced Monday.