Rental EVs Are More Common Than Ever

Rental EVs Are More Common Than Ever

Want to try a Tesla? Rental EVs may be the way to go

Hertz’s recent commitment to purchase more EVs has us thinking about how rental EVs will affect the larger market.

Rental companies purchase about 10% of new cars in the US each year, meaning their decisions have great sway outside of their rental niche. 

Photo of Tesla rental EVs in front of a Hertz retail location.Hertz Is Bullish on Rental EVs

Hertz has made the biggest media splash regarding EVs. In 2021, the company announced it would purchase 100,000 more Teslas. And then last month, it announced its intention to buy 65,000 Polesar EVs

The rental company intends to have 20% of its fleet made up of EVs by the end of 2022. 

The Rest of the Industry Is Too

Enterprise Holdings, which owns Enterprise, National, and Alamo, has also committed to expanding its EV fleet to meet customer demands. The company has said customers are using the rental company to try out EVs for the first time.

What Do Rental EVs Mean for the Rest of Us?

A Carmigo branded line illustration of a lightning bold.As we said earlier, rental companies purchase a significant chunk of the US new car inventory each year. 

But this isn’t necessarily a case of, “As the rental companies go, so does the marketplace.” In fact, large purchases by rental companies have typically corresponded with a devaluation of that model. Plus selling to rental companies typically brings in less revenue and dilutes the resale market. 

But, since electric vehicles are an emerging trend, partnering with rental companies could be a strong strategic move for EV companies. 

Research shows two major barriers to entry for new consumers are a general lack of knowledge and trust in the new technology. 

So now might actually be the time for you to try out a couple of EVs without paying loads of cash for a Tesla.s

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