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Hertz to sell 20k EVs in shift back to gas-powered cars

bloomberg.com

721–730 of 834 posts

Re: Hertz to sell 20k EVs in shift back to gas-powered cars

#721

Earlier quoted context omitted.

If a brand popped up and offered a gasoline ICE with old toyota-level reliability and longevity, and without electronics (save for maybe bluetooth for some music) I'd pay a sizeable premium for it.

> brand popped up and offered a gasoline ICE with old toyota-level reliability and longevity, and without electronics Bought that car last year for about 20K - Kia Rio 5 door. Wonderful little car.

Oh yeah? I will definitely look it up. Thanks for the info.

Re: Hertz to sell 20k EVs in shift back to gas-powered cars

#722
post #685

I rented a Tesla on a recent trip lasting a few days, and I feel there are other reasons for which is a bad rental car than charging. I've rented a lot of cars, but when I got this one I spent ten minutes completely dumbfounded trying to get it going. They gave me a key card but I couldn't figure out what to do with it. Swipe it, I guess, but where? I tried the door, but the pillar? Would've never guessed until looki…

I couldn’t agree more. Tesla has a major problem of not following the standard interaction design of cars. If you have to Google how to do something on your rental car, the designers have failed. Even opening the back door while inside is unorthodox. There’s not a handle to pull, instead it’s a push button that looks like it’s for the window?

Sounds like Hertz should be handing out a cheat sheet.

Re: Hertz to sell 20k EVs in shift back to gas-powered cars

#723
post #699

Earlier quoted context omitted.

The way you rent cars isn't necessarily the way that other rental car customers rent cars. If you're going on a road trip you don't want an EV. But I rent cars about 12x a year for trips of just a few days with very little mileage, just so I don't have to depend on taxis, and EVs are a great choice for me. I don't usually drive more than 50 miles on those trips, and strongly prefer EVs because I find them to provide…

For low mileage trips, why not Uber or take public transit?

Public transit is not an option in these places (midsize US cities: no subway, very sparse bus service).

Vs Uber: I personally prefer driving myself. No wait, and freedom (shoot, it's 10pm and I realize I forgot to pack toothpaste, I might not want to pay Uber $20 for a stupid round trip to CVS to buy a $2 tube of toothpaste). Also I tend to get carsick if the driver's not smooth.

Re: Hertz to sell 20k EVs in shift back to gas-powered cars

#724

Earlier quoted context omitted.

> You seem to be confusing home/destination chargers and rapid chargers Well, or they went to https://ionity.eu/en/network/network-status or https://www.zap-map.com/live/ looked at Manchester and it listed only one Ionity charger, "Manchester East".

Doesn't really matter, but that's one location that contains multiple chargers. Of course, very few people that live in Greater Manchester would use a really fast charger like those there whilst in Greater Manchester. Maybe if you're a taxi driver, or caught short somehow? This is the confusion I was talking about.

> that's one location that contains multiple chargers.

It's still one location. If I live in Trafford is easily a 45 minute drive, much worse at peak times.

> very few people that live in Greater Manchester would use a really fast charger

Because obviously we all have driveways and we can leave the car there overnight. Fuck 'em terraces scum. /s

Re: Hertz to sell 20k EVs in shift back to gas-powered cars

#725

Im bullish on EVs but I feel like rental cars are one of the worst places for the current generation of EVs. EVs are best for the types of driving we do on a day-to-day basis. Short commutes in areas we know well. Charge at home over night and 95% of the year you never worry about charging. Renting a car means I'm usually either driving long distances or im somewhere new and I don't know about the local charging infr…

> rental cars are one of the worst places for the current generation of EVs.

They make more sense for the short term car-club type rentals, where they can be charged the whole time when not in use, then borrowed for an hour or 2 booked on an app. But if you can't charge at home, it makes little sense to use an EV at the moment. It might make sense for small fleets of rental EVs to be based at hotels. You could just take whichever car was charged when you go out in the morning.

The other problem Hertz had was repair costs. EVs are more expensive to repair both because there are less repairers qualified to repair them and because parts are more expensive and more valuable etc.. I expect people driving unfamiliar cars are more likely to have accidents with them, so this would be worse for rental companies than for normal people.

Re: Hertz to sell 20k EVs in shift back to gas-powered cars

#726
post #685

I rented a Tesla on a recent trip lasting a few days, and I feel there are other reasons for which is a bad rental car than charging. I've rented a lot of cars, but when I got this one I spent ten minutes completely dumbfounded trying to get it going. They gave me a key card but I couldn't figure out what to do with it. Swipe it, I guess, but where? I tried the door, but the pillar? Would've never guessed until looki…

You'd think they could give you a pamphlet with the key to cover the basics.

It would be reasonable mitigation , but there are plenty of great EVs on the market now that have similar range and drive quality to Teslas without requiring adaptation to unfamiliar controls.

Re: Hertz to sell 20k EVs in shift back to gas-powered cars

#727
post #724

Earlier quoted context omitted.

Doesn't really matter, but that's one location that contains multiple chargers. Of course, very few people that live in Greater Manchester would use a really fast charger like those there whilst in Greater Manchester. Maybe if you're a taxi driver, or caught short somehow? This is the confusion I was talking about.

> that's one location that contains multiple chargers. It's still one location. If I live in Trafford is easily a 45 minute drive, much worse at peak times. > very few people that live in Greater Manchester would use a really fast charger Because obviously we all have driveways and we can leave the car there overnight. Fuck 'em terraces scum. /s

Like many UK EV owners I don't have a driveway either and use a lamp post charger overnight.

Re: Hertz to sell 20k EVs in shift back to gas-powered cars

#728
post #267

Earlier quoted context omitted.

where a car is salvaged, we must crystallize at once any difference between our carrying value and the market value of that car Hang on though, this part has nothing to do with repair costs. This just sounds like an accounting issue, right? If anything I would expect this to benefit Hertz since they could write off the higher loss in their taxes immediately, instead of waiting until future years to write the value of…

This obviously decreases their margins since the insurance premiums go up. And if they self insure as the other guy claims, then the repair costs come straight out of their wallet.

Right, that’s true on the “higher repair costs” side of the original post, but I’m talking about the “market prices have gone down so we have to recognize bigger losses on salvage” aspect later in the post, which is caused by changes in fair market value and doesn’t have to do with the cost of repairs.

Re: Hertz to sell 20k EVs in shift back to gas-powered cars

#729
post #267

Earlier quoted context omitted.

where a car is salvaged, we must crystallize at once any difference between our carrying value and the market value of that car Hang on though, this part has nothing to do with repair costs. This just sounds like an accounting issue, right? If anything I would expect this to benefit Hertz since they could write off the higher loss in their taxes immediately, instead of waiting until future years to write the value of…

I would imagine the difference would manifest itself in higher insurance rates. You can't just "write off more value" for free.

Right but the part of the argument I quoted had nothing to do with repair costs: they were making the point that changes in FMV due to EV prices going down in general were forcing them to recognize bigger losses in salvage situations, since they have to re-value the car post-salvage based on current market prices.

So in this case they are basically writing off more value “for free”, because the loss is coming from a genuine loss in value of the asset, but since the asset is a car that may still provide the same amount of value back to Hertz and still last the same amount of time, it’s sort of a weird corner case where you could argue they haven’t really lost anything.

Of course that loss is offset by lower depreciation losses in the future, so it’s not like it’s coming out of nowhere.

Re: Hertz to sell 20k EVs in shift back to gas-powered cars

#730
post #267

Earlier quoted context omitted.

where a car is salvaged, we must crystallize at once any difference between our carrying value and the market value of that car Hang on though, this part has nothing to do with repair costs. This just sounds like an accounting issue, right? If anything I would expect this to benefit Hertz since they could write off the higher loss in their taxes immediately, instead of waiting until future years to write the value of…

even if it were true, aren't they exacerbating the issue by "crystallizing" the loss on every single EV rather than just the ones that are salvaged? hardly seems like a reason to sell-all.

Yeah that’s also a great point, I hadn’t thought of that, but it does blow a pretty big hole in the argument.
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