Looking at the cars on AutoTrader the average mileage is 23K. In the before-times I was in a rental car every other week and there's a big difference between cars that have 5K on the clock and anything close to 20K. Anything more than that just felt trashed. Every surface has been beat on then washed hundreds of times so the paint, wheels, interior plastics, carpets, seats, switch gear, trunk, etc., looked tired and mechanically the cars just feel a bit off. That considered 23K miles on a Hertz Corvette =/= 23K on your average Ford Fusion Hybrid rental car. If I cared about GM and had a big car collection sure I'd toss one into the pile for the novelty but as a primary or 2nd car (i.e. the single fun car for me to enjoy/pamper) that's a very hard pass from me.
As I mentioned earlier my shop landlord buys lots of rental cars, mostly enterprise.
They usually come with 25-30k miles and are VERY clean. I haven't found an issue on any of them outside usually a dent or a scratch and most of the time they pay to have that fixed. (that and the weird specs I noted before)
He's currently got his daughter in an altima that I didn't see when he first got it, but he is driving it today.. it is mint. He has another loaded one he is personally driving that I borrowed for a weekend to see if the GF wanted to buy, it had 34k? on it and still had protective film all over it, smelled new, not a dent or scratch or issue with the interior. I think sticker was like 31-33k and he was into it for 16,500 I think.
I have definitely been in some beat up rentals, but all the ones he has had come through are fantastic.
Well it's official: Hertz North America have officially filed for Ch. 11 bankruptcy with a staggering $19 billion in debt, about $14 billion of which is securitized and has $1 billion in cash.
They've noted that the used values of cars have fallen and they're hoping to sell 30,000 vehicles per month until the remainder of the year to generate $5 billion. Wonder what it'll do to used car prices.
Hertz's Late-Night Bankruptcy Filing Sends Ripples Through The Auto Industry
continueshttps://jalopnik.com/hertzs-late-night-bankruptcy-filing-sends-ripples-throu-1843628287After weeks of hardship due to decimated demand, the car rental giant Hertz filled for Chapter 11 Bankruptcy late Friday night. Hertz has been struggling to keep its head above water since the Covid-19 crisis began, and it seems the company has held out for as long as it could. Its fleets of used cars are now hitting the market, and one company’s misfortune will soon become some car buyer’s killer deal.
After a tense day of talks with creditors, Hertz filled for Chapter 11 Bankruptcy, according to Automotive News. While Chapter 11 allows the company to continue to operate in order to figure out how to pay debts and hopefully turn the business around, the situation for the car rental company is pretty dire:
Hertz normally leases its fleet, instead of doing buybacks with the auto companies it works with. Normally, Hertz would simply sell off excessive vehicles when demand dropped, but with the used car demand dropping along with travel (Hertz does most of its business at airports) the company had no way to keep its head above water. But selling off inventory may not be enough.Hertz said it had $1 billion in cash to support its operations, which include Hertz, Dollar, Thrifty, Firefly, Hertz Car Sales, and Donlen. But it might need to raise more, perhaps through added borrowings while the bankruptcy process moves forward, Hertz said.
The court petition listed about $25.8 billion in assets and $24.4 billion of debts. Its biggest creditors include IBM Corp. and Lyft Inc., according to the document.
Hertz has traditionally been a leading buyer of fleet cars from the Detroit 3 and other automakers. Last year, Hertz held as many as 567,600 vehicles in its U.S. fleet and 204,000 in its international unit, holding those in the U.S. for an average of 18 months and international vehicles for 12 months, according to a U.S. filing.
Its biggest suppliers of fleet vehicles were General Motors (21 percent), Fiat Chrysler (18 percent), Ford (12 percent), Kia (10 percent), Toyota (9 percent), Nissan (7 percent) and Hyundai (5 percent), according to the filing.
Hertz already tried selling enough cars to stay afloat, and it didn’t work. In early March Hertz sold 41,000 used cars in the U.S., but pumped the brakes as returns shrank and auto auctions stopped, according to CNN. Used car prices then fell 34.4 percent in April. A ton of new inventory on the market will likely push prices down even more, making it extremely difficult for Hertz to climb out of the hole it is in.
Maybe we should do a thread about the impacts of the pandemic on the auto industry. There are so many different factors, and some of them are working against each other, making it hard to predict some things. The question about Hertz and the used-car market is a case in point. Obviously in the short term there will be an oversupply of used cars, driving down prices. But if we work through the backlog and the rental industry never really recovers, the medium- to long-term effects might be very different. Former rentals are a major source of late-model used cars sold at dealerships. If that pipeline dries up, ultimately there will be a shortage of late-model used cars and prices will go up. That could potentially lead to increased demand for new cars in the lower prices ranges, which is an area where most automakers have made significant cuts in recent years.
Another question I was wondering about is the impact of more people working from home, potentially for the long term, weighed against the impact of commuters potentially staying away from public transit. People who shift to working from home might buy fewer cars, while people who used to depend on public transit might go out and buy a car instead. On top of all that is the general trend toward lower auto sales during recession periods. I'm not sure which trends will outweigh the others. This is not a time when I would want to be in product planning at an automaker.
Still, if I had a 20k mile Chevy Malibu I needed to unload I'd be concerned.