Quote:
Originally Posted by ember1205
Hertz filed for bankruptcy mostly because they had been re-investing their cash into the business to make improvements and modernize areas of the business. As a result, their cash on hand when COVID hit was significantly less than were the other companies were at.
Rental companies are ALWAYS selling used cars. People weren't buying them, though, because the market for them was soft. And, their selling was because they were also buying - part of their efforts to improve their fleet and have newer cars. In other words, when COVID hit, they got caught in a perfect storm of having spent money to BUY cars but weren't recouping money from SELLING cars at the same rate.
They proposed selling something like 15% of their fleet after they filed for bankruptcy and it got approved. The reason it worked, though, is because the market actually came back a bit at the time they were starting to sell off newer, more expensive cars.
You do know that they have exited bankruptcy protection, right? They've recovered their business far enough, and have a go-forward plan, to where they can become profitable and bring value to shareholders and customers.
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The main issue with the rental market is that Enterprise just totally took control of it. At least in this part of FL you see an enterprise literally every couple miles.
Even our Chevy dealer has an Enterprise inside their dealership. Then another one just 3 miles away, and 3 miles away is yet another one at the airport.
Enterprise down here didn't sell off a lot of their inventory during covid.
The rental companies tend to sell their car, at least their performance cars when they hit 25-28,000 miles. Makes me wonder because they want to unload them before the warranty is up knowing they take a beating. Also, they're a depreciating asset for them Sorta like the airlines I guess and how they sell many of their planes once they get a certain age due to accounting reasons.
I nearly jumped on a 2ss rag top. The only think missing from the Hertz and Enterprise 2ss ragtops is they do not have the NPP on them. At the time the price was unbeatable BUT people on this forum talked me out of buying a rental car.