As Tesla cuts prices and used Teslas from Hertz pour into the market, EVs are getting more affordable for the average car buyer.
With the new 2024 Model 3 Highland now available in the U.S. that means plenty of prior-generation 2023 Model 3 are available on Tesla’s inventory page. Add Hertz and Tesla’s own used car sales to the equation and pricing gets even more interesting.
Hertz pricing: Hundreds of Model 3 and Model Y vehicles are now available on Hertz Car Sales website with pricing for a Model 3 — albeit with lots of miles — starting about $20,ooo. Prices for the Model Y are higher, starting at about $33,000.
Other EVs, such as the Chevy Bolt EUV, are also for sale on the Hertz website starting at around $22,500. The used Bolt EUVs — which are base LT models — tend to have lower miles than the many of the Teslas.
Hertz announcement background reveals EV rental challenges: This comes after Hertz revealed on January 11 that it is selling approximately 20,000 EVs in a Securities and Exchange Commission filing. Hertz said it will “continue to improve the profitability of the remaining EV fleet” via initiatives that “include the expansion of EV charging infrastructure” and “more affordable access to parts and labor.”
The cost of maintaining EVs has proved to be too high, Edmunds’ consumer insights analyst, Joseph Yoon, told me in an email.
“It seems the major issue with Hertz’s Tesla fleet was that half of the vehicles were allocated to rideshare rental fleets, and the costs associated with repairing and maintaining rideshare vehicles were much higher than anticipated,” Yoon said.
Charging has also been an issue, according to Tyson Jominy, VP of data & analytics at J.D. Power. “Customers also have been finding EVs with a very low state of charge, which would be discouraging for a traveler who just got off a plane and found themselves in a scavenger hunt to locate a charger,” Jominy told me in an email.
Tesla used car pricing: While Hertz’s actions mean more used Model Ys and Model 3s, Tesla sells lots of used cars too. For example, a used 2021 Model Y with 44,791 miles lists for $31,900 on the Tesla used car website. On Hertz, a used 2022 Model Y with 67,983 miles lists for $34,900 by comparison.
A used 2021 Model 3 with 45,213 miles starts at $27,400 on the Tesla website. By comparison, a 2023 Tesla Model 3 Base Sedan lists for $30,999 on the Hertz website with only 14,878 miles.
Tesla new inventory pricing: With the 2024 Model 3 Highland now available in the U.S. starting at just under $39,000, Tesla’s new car inventory pricing for the previous model 3 now starts at around $35,000. Model 3 Performance inventory models are eligible for the $7,500 federal tax credit. However, new Model 3 Highland are not shown as being eligible for the credit.
Tesla’s new inventory pricing for the Model Y starts at $37,760 for a demo vehicle. For non-demo vehicles prices start at $38,270 for Model Y Rear-Wheel Drive models.
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