Car rental giant Hertz has decided to put its rented electric vehicles up for sale due to a significant depreciation in their value. Initially planning to sell 20,000 vehicles, this number increased to 30,000 due to the additional depreciation.

Hertz’s loss in the value of rented electric vehicles has resulted in losses for the company.

In the post-pandemic period, aiming to innovate in the car rental sector by purchasing 100,000 Teslas, Hertz is painfully showing that electric vehicles are not as solid an investment as expected.

The high maintenance costs of electric vehicles and their faster depreciation than expected led the company to decide to sell these vehicles earlier and at a loss. They had wanted to apply the successful business model they used for internal combustion engine vehicles to electric vehicles.

In other words, making money by selling vehicles that reach a certain mileage. However, this model did not work out as they had hoped for electric vehicles. Issues with the charging infrastructure of electric vehicles and consumer dissatisfaction in this area added insult to injury for Hertz.

All these reasons, despite the company losing $392 million in the first quarter of 2023 and showing only a 2% increase in revenue, led to financial difficulties. This situation prompted Hertz to sell more rented electric vehicles. Now, the sale of 30,000 electric vehicles has revealed the dire consequences of the company’s experiences in this area.

These sales are seen as both a loss for Hertz and a great opportunity for those looking for used electric vehicles. This situation could be an example of how quickly dynamics can change in the electric vehicle market and how significant depreciation can lead to major consequences. Why do you think electric vehicles depreciate so quickly? You can write your opinions in the comments section below.