Used vehicles formerly used by Hertz as rental cars selling for thousands below market price
Luxury vehicles are the hardest hit
Hertz declared bankruptcy in the wake of the COVID-19 pandemic
Hertz is selling its vehicle inventory after declaring bankruptcy due to the COVID-19 breakout. Interestingly, Hertz vehicles are going for less than market value on the used car market which could mean great deals for consumers.
ISeeCars recently published a study on the value of Hertz rental cars on the used car market and found that on average, the vehicles were selling for $1,389 below market value. That translates into an 8 percent drop in value compare to similar used cars.
A wide range of models are selling even further under market value. Pre-owned BMW 7 Series models, for example, are selling 13.7 percent below market which translates into savings of $6,877. The Mercedes-Benz A-Class ($4,252 under market, 13.0 percent), the Infiniti QX50 ($4,145, 12.7 percent), the Lincoln Continental ($3,467, 11.8 percent) and the Cadillac CTS ($3,204, 11.6 percent) are all examples of hard-hit luxury vehicles.
The Chevrolet Trax is going for $1,714 under market value which isn’t huge, but it still represents savings of 13.4 percent. Here’s an overview of the top 10 Hertz pre-owned cars with the largest savings compared to market value.
Rank | Vehicle | Average % Below Market Value | Average $ Savings | Average Price |
1 | BMW 7 Series | 13.7% | $6,877 | $42,680 |
2 | Chevrolet Trax | 13.4% | $1,714 | $11,196 |
3 | Mercedes-Benz A-Class | 13.0% | $4,252 | $28,555 |
4 | INFINITI QX50 | 12.7% | $4,145 | $27,760 |
5 | Toyota Tundra | 12.6% | $4,714 | $31,383 |
6 | Nissan Versa Note | 12.4% | $1,375 | $9,533 |
7 | Buick Cascada | 12.4% | $2,241 | $15,564 |
8 | Kia Forte | 12.3% | $1,468 | $10,851 |
9 | Volkswagen Golf | 12.3% | $2,023 | $14,434 |
10 | Nissan Quest | 12.0% | $1,810 | $13,874 |
Overall Average | 8.0% | $1,389 | $17,020 | |
“The vehicles with the greatest discounts are a mix of vehicle types across a wide range of price points, so shoppers in the market for a late-model used vehicle should consider these cars,” said iSeeCars CEO Phong Ly. “Consumers might not consider used rental cars because they typically have higher mileage than late-model used cars that are often off-lease, but there are benefits to buying from a rental company including the fact that they are well-maintained and follow a regular maintenance schedule.”
As ISeeCars points out, there are both benefits and limitations to buying a used car from a rental car company. The vehicles usually have more wear and tear, but on the other hand they were driven by people who were careful not to cause significant damages that were incur costs. Hertz offers a 115-point inspection as well as a limited powertrain warranty. That said, you can’t negotiate the price with Hertz.
In any case, if you are in the market for a pre-owned vehicle, checking out what Hertz has to offer could lead to some pretty significant savings.
