Hertz is taking an innovative approach to reducing its electric vehicle fleet, offering significant discounts to current renters who might be interested in purchasing their rental vehicles. The rental giant is listing 2023 Tesla Model 3s for as low as $17,913 – a striking price point that sits well below current market values, reports The Verge.

The company’s strategy extends beyond Tesla vehicles, with 2023 Chevrolet Bolts being offered at $18,442 and Polestar 2 models available around $28,500. These prices represent substantial discounts compared to both new and typical used market values, even considering the rental fleet history. The vehicles come with a limited 12-month, 12,000-mile powertrain warranty and a 7-day buyback guarantee, suggesting Hertz is prioritizing quick sales over maximum return.

This targeted sales approach follows Hertz’s February announcement to sell approximately 30,000 Teslas from its fleet, marking a significant retreat from its ambitious electrification plans announced in 2021. The company has cited lower-than-expected customer demand and challenges with repair costs, particularly for the Tesla Model 3, as key factors behind this strategic shift.

What makes these offers particularly noteworthy is the condition of the vehicles. Some Tesla Model 3s being offered have accumulated only around 30,000 miles – relatively low mileage for rental vehicles, potentially making them attractive to buyers who might otherwise be priced out of the EV market.

Jamie Line, Hertz’s communications director, frames this as a standard business practice rather than a distress sale, noting that connecting renters with sales opportunities has long been part of their strategy. However, the timing and pricing suggest a more aggressive approach to fleet reduction than typical used car sales programs.

The implications for the broader EV market could be significant. These discounted fleet sales may create downward pressure on used EV prices, particularly for the Model 3 and Polestar 2. This comes at a time when many manufacturers are adjusting their EV strategies amid shifting market conditions and consumer demand patterns.

The situation also raises questions about the viability of large-scale EV adoption in rental fleets, where factors like maintenance costs, charging logistics, and customer familiarity play crucial roles in operational success. Hertz’s experience could influence how other rental companies approach their own electrification strategies.

For potential buyers, these sales represent an opportunity to enter the EV market at a significantly reduced price point, though careful consideration should be given to the rental history and long-term ownership costs, including potential battery degradation and maintenance requirements.