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My Son Bought a 2022 Tesla Model 3 From Hertz For a Ridiculous Price of $14K After Rebates, Clean CarFax and Only 5 Percent Battery Degradation

My Son Bought a 2022 Tesla Model 3 From Hertz For a Ridiculous Price of $14K After Rebates, Clean CarFax and Only 5 Percent Battery Degradation

  • 24.03.2025 11:43
  • torquenews.com
  • Keywords: Hertz, Tesla

Tony's son bought a 2022 Tesla Model 3 for $14K after rebates from Hertz, with only 5% battery degradation and a clean CarFax. While the deal seems great, potential buyers should be cautious of high mileage and possible hidden costs when purchasing from Hertz.

Tesla ReportsTSLAsentiment_satisfied

Estimated market influence

Hertz

Negativesentiment_dissatisfied
Analyst rating: N/A

Hertz is selling off its Tesla Model 3 fleet, which may lead to financial losses for the company.

Tesla

Tesla

Positivesentiment_satisfied
Analyst rating: Neutral

Tesla's battery warranty and reliability contribute positively to their market position.

Context

Analysis of Tesla Model 3 Purchase from Hertz: Business Insights and Market Implications

Key Facts and Data Points

  • Purchase Price: $14,000 after rebates for a 2022 Tesla Model 3.
  • Mileage: 100,000 miles.
  • Battery Degradation: 5% (considered excellent for 100,000 miles).
  • Additional Upgrades:
    • TSportline 20s wheels.
    • Tinted windows.
    • Yellow calipers.
    • Full Nardo gray PPF protection.
  • Hertz Fleet Sale: Hertz is selling off its Tesla Model 3 fleet, with some models available for under $20,000.
  • Warranty Details:
    • Tesla offers an 8-year or 100,000-mile warranty on battery capacity (70% minimum).
    • Real-world data suggests batteries retain ~85-90% capacity after 100,000 miles.
    • Hertz provides a 12-month/12,000-mile limited powertrain warranty with a $100 deductible.

Business Implications

  • Hertz's EV Downsizing: Hertz is reducing its EV fleet by 30,000 units (10,000 more than initially planned) due to significant depreciation losses ($588 million in Q1 2024).
  • Used EV Market Dynamics:
    • High-mileage EVs like the Model 3 may offer attractive prices but come with risks of battery degradation and potential repair costs.
    • Buyers should consider long-term battery replacement costs (e.g., $16,000 for a new battery).

Market Trends

  • Rapidly Scaling EV Markets: The shift to electric vehicles is accelerating, leading to challenges in fleet management and depreciation.
  • Battery Lifespan Concerns: High mileage can impact battery performance, affecting resale values and buyer confidence.

Competitive Dynamics

  • Hertz's Strategy: Focusing on used EV sales to recover from rental losses.
  • Tesla's Positioning: Tesla's reputation for reliable batteries and long warranties positions it as a preferred brand in the used EV market.

Strategic Considerations

  • Buyer Caution: Potential buyers should:
    • Inspect vehicles thoroughly.
    • Verify mileage and battery health.
    • Check for hidden issues (e.g., salvage titles).
  • Warranty Limitations: Hertz's limited warranty highlights the need for additional due diligence.

Long-Term Effects

  • Battery Replacement Costs: High-mileage EVs may require expensive battery replacements, impacting long-term ownership costs.
  • Market Saturation: The influx of used EVs from rental fleets could affect new and used car markets.

Regulatory Impacts

  • Used Car Market Regulations: Potential regulatory scrutiny on used EV sales practices, particularly regarding transparency and warranty coverage.

Conclusion

The sale of a 2022 Tesla Model 3 for $14,000 after rebates highlights the complexities of the used EV market. While Hertz's fleet liquidation offers attractive prices, buyers must weigh the risks of high mileage, potential battery degradation, and hidden issues like salvage titles. The case underscores the importance of due diligence in the rapidly evolving EV landscape.