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Old 07-21-2021, 04:12 PM   #29
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That's not entirely accurate...

- Hertz filed for bankruptcy in May 2020 - just over a year ago and AFTER the start of COVID.

- A fire in a lot where cars are stored would have been A) reimbursed by insurance and B) written off for any actual loss after the insurance. This would have been a benefit to rental companies, not a detriment (at the time). This gets the asset off of the books immediately and replaced with cash.

- Rental companies are -always- selling cars. Some of the ones they buy end up being sold off due to lack of consumer interest or higher-than-anticipated costs to own/maintain (or about a thousand other reasons).

- The large sell-off of cars from Hertz was not "ordered" but rather "approved" as part of their plan to return to profitability. Selling the cars removed the asset from the books and replaced it with cash which provided them an opportunity to pay their bills. With the massive drop-off in rental demand, there was no value in keeping the inventory and depreciating it.

- Hertz actually had NOT been selling off cars of late because there was a heavy drop-off in demand for used cars. Similar for the other rental companies.

The timing of the selling of cars for Hertz as well as many other rental companies was viable for them because car sales in general had effectively stopped up to that point. Prices were slightly buoyed because of low supply in general with some pent-up demand starting to hit.

As those cars moved into the private ownership realm, they were filling a gap that car dealerships couldn't meet because auctions were shut down as were the dealers themselves. And, as dealers started to resume operations, they had no new inventory coming in so they were quickly "sold through" their inventory.

In the fall, things slowed back down and demand dropped back off a bit while supply was just starting to return slightly. In the spring of 2021, limited "restocking" of new vehicles had been completed, there was a resurgence of travel (and demand for rental cars, partially meaning that some rental companies would need to be -buying- cars again), and more pent-up demand were still smashing into the chip shortage issues and officially forcing shut-downs and non-delivery due to not having the parts to build vehicles.

Absolutely everything surged in price because of lack of supply and the pent-up demand. Part of the demand was also fueled by people having saved more cash because they weren't spending as much on things like transportation to work and eating out. All of that has combined to drive the price of cars up by driving down the available inventory. It will come back down, but if it doesn't happen very soon, consumers are going to move into the mindset that "cars just cost more now" and we'll all be paying way more than we should be forever more...
They were selling their inventory like crazy before covid though trying to raise cash and unload their assets. They've been having financial problems for a long time. They're still selling cars. Just saw them list a 2019 mustang gt premium ragtag the other day. Makes sense to liquidate those because they're not their main profit maker.

4 years from now you're probably not even going to see the name hertz anymore unless someone buys them and retains their name.

Around here Enterprise has a monopoly on the rental car market.

Hertz raised their prices too on their used mustangs btw.

I could have scored a killer deal on a 2ss ragtop when I was looking. 2019 28k miles under 32k with warranty left but more I thought about it I knew those cars take a heavy beating.
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Old 07-21-2021, 04:28 PM   #30
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Originally Posted by CamaroSSStlfan View Post
They were selling their inventory like crazy before covid though trying to raise cash and unload their assets. They've been having financial problems for a long time. They're still selling cars. Just saw them list a 2019 mustang gt premium ragtag the other day. Makes sense to liquidate those because they're not their main profit maker.

4 years from now you're probably not even going to see the name hertz anymore unless someone buys them and retains their name.

Around here Enterprise has a monopoly on the rental car market.

Hertz raised their prices too on their used mustangs btw.

I could have scored a killer deal on a 2ss ragtop when I was looking. 2019 28k miles under 32k with warranty left but more I thought about it I knew those cars take a heavy beating.
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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Old 07-21-2021, 05:32 PM   #31
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Hard to get mad about people trying to make money.
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Old 07-21-2021, 09:01 PM   #32
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Originally Posted by ember1205 View Post
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.

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.
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Old 07-22-2021, 07:05 AM   #33
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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.
Hertz and Enterprise target entirely different customers. Hertz is focused on the business traveler and Enterprise is focused on the leisure traveler / local customer (when their car is in the shop, for example, which is why you see them at car dealerships or close by).

Hertz was the only company that "had" to sell a lot of cars because they were the only ones that were cash-poor going into the pandemic.

The timing of the sale of the car is less about the warranty and more about its overall residual value and getting that depreciating asset off of the books.
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Old 07-22-2021, 07:26 AM   #34
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Hard to get mad about people trying to make money.
Right... I mean it really is no different then guys on here selling their car to Vroom because they are being offered a ridiculous offer. Guys are taking the payout, why wouldn't the dealers try. Start high and come down. Can always go down, can't ever go up.
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Old 07-22-2021, 08:20 AM   #35
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Originally Posted by ember1205 View Post
Hertz and Enterprise target entirely different customers. Hertz is focused on the business traveler and Enterprise is focused on the leisure traveler / local customer (when their car is in the shop, for example, which is why you see them at car dealerships or close by).

Hertz was the only company that "had" to sell a lot of cars because they were the only ones that were cash-poor going into the pandemic.

The timing of the sale of the car is less about the warranty and more about its overall residual value and getting that depreciating asset off of the books.
Funny a used car lot by me bought a Hertz camaro ss rental for like 32k. They then listed it as a new arrival former rental and jacked the price up 5 grand lol.

Some poor sucker won't realize they could just go to Hertz and buy it for far cheaper lol. I knew right away where that car was from. I wonder how many rentals they buy cheap then jack the price up.
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Old 07-22-2021, 11:11 AM   #36
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Right... I mean it really is no different then guys on here selling their car to Vroom because they are being offered a ridiculous offer. Guys are taking the payout, why wouldn't the dealers try. Start high and come down. Can always go down, can't ever go up.
that's not true anymore lol dealers are using "live data" to justify prices. which means when the low comparables sell, they raise the price. Sonic automotive group is one of the worst offenders of this.. their prices could swing $1500-$2000 in a 24 hr time frame and they'd call it normal. Both up and down
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