20 votes

Hertz files for bankruptcy after rental-car demand vanishes

8 comments

  1. [2]
    Deimos
    Link
    Axios published a short article today explaining some of the weird financial-engineering and private-equity stuff that's been going on in the background at Hertz: Why Hertz crashed It's definitely...

    Axios published a short article today explaining some of the weird financial-engineering and private-equity stuff that's been going on in the background at Hertz: Why Hertz crashed

    It's definitely not as simple of a story as coronavirus killing the demand for rental cars.

    6 votes
  2. [6]
    skybrian
    Link
    From the article:

    From the article:

    While all travel-related companies have been hurt by the pandemic, a big part of what’s weighed on Hertz is its strategy of owning or leasing a large portion of its fleet outright instead of acquiring them through buyback agreements with manufacturers. Hertz typically responds to falling demand by selling cars from its fleet, so it has been hit especially hard by a drop in prices at used car auctions.

    5 votes
    1. [5]
      Omnicrola
      Link Parent
      Which I have appreciated in the past. The last car I bought was through their sales operation. I got a less than 2 year old car for $11k because it had almost 50k miles on it. Still own it 3 years...

      Which I have appreciated in the past. The last car I bought was through their sales operation. I got a less than 2 year old car for $11k because it had almost 50k miles on it. Still own it 3 years later and still quite happy with it.

      4 votes
      1. [4]
        krg
        Link Parent
        Same! Well, not through Hertz, but Enterprise. Car rental companies are great for buying used.

        Same! Well, not through Hertz, but Enterprise. Car rental companies are great for buying used.

        3 votes
        1. [3]
          joplin
          Link Parent
          Assuming you understand the tradeoffs you are making. Rental cars tend to be very abused.

          Assuming you understand the tradeoffs you are making. Rental cars tend to be very abused.

          3 votes
          1. [2]
            krg
            Link Parent
            I imagine mileage would be a good indicator, though, right?

            I imagine mileage would be a good indicator, though, right?

            2 votes
            1. joplin
              Link Parent
              It's probably a reasonable heuristic in most cases, but you can't discount the occasional car renters who might have taken their mid-sized sedan off-roading or something weird like that. If you...

              It's probably a reasonable heuristic in most cases, but you can't discount the occasional car renters who might have taken their mid-sized sedan off-roading or something weird like that. If you can test drive it over to a mechanic and have it looked at, that's your best bet for knowing the condition and your likely future expenses.

              8 votes