Hertz is Going Bankrupt and You Can Get a Free Car
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Date: 2020-05-26
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Comments and reviews: 9
Jerry
Scotty, I work for two major car rental companies and the problem that Hertz has is the exact same issue as all the rest. All the rental companies can forecast usage fairly well so they size their fleet to that projected need plus they have constant orders for new cars to constantly cycle out higher mileage units for new cars. So we were coming into summer and cars rentals are much higher so the companies were building up for the surge then in 2 weeks 90% to 95% all gone. At my local airport we went from a 200 car weekend to less than 10. So car rentals had for examples several thousand cars in a district but they can now get by with less than 1000. But they are paying for all the thousands of cars in the fleet plus they have several thousand more cars on order. Then to exasperate the problem, the normal markets that were available for the cars to be taken out to the rental fleet, have completely dried up so the rental companies are stuck with the units. So Hertz's vehicles that might be available for sale are a drop in the bucket of rental cars that are available to the public. Putting it bluntly if you wanted to buy 10, 000 cars today you could have them by the end of the week. Actually car rental companies may be one of the few places that will have cars for sale in the next few months. Dealers are running low inventory, new cars will be a while as the supply chain gets parts available to build new and rental fleets that have the capital to survive are sitting on thousands to 1-2 year old cars with low mileage as they have been sitting in holding lots collecting dust.
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Scotty, I work for two major car rental companies and the problem that Hertz has is the exact same issue as all the rest. All the rental companies can forecast usage fairly well so they size their fleet to that projected need plus they have constant orders for new cars to constantly cycle out higher mileage units for new cars. So we were coming into summer and cars rentals are much higher so the companies were building up for the surge then in 2 weeks 90% to 95% all gone. At my local airport we went from a 200 car weekend to less than 10. So car rentals had for examples several thousand cars in a district but they can now get by with less than 1000. But they are paying for all the thousands of cars in the fleet plus they have several thousand more cars on order. Then to exasperate the problem, the normal markets that were available for the cars to be taken out to the rental fleet, have completely dried up so the rental companies are stuck with the units. So Hertz's vehicles that might be available for sale are a drop in the bucket of rental cars that are available to the public. Putting it bluntly if you wanted to buy 10, 000 cars today you could have them by the end of the week. Actually car rental companies may be one of the few places that will have cars for sale in the next few months. Dealers are running low inventory, new cars will be a while as the supply chain gets parts available to build new and rental fleets that have the capital to survive are sitting on thousands to 1-2 year old cars with low mileage as they have been sitting in holding lots collecting dust.
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David
You need to look again Scotty. I'm not sure I agree with your statement on maintenance because many of these rental cars are less than 2 years old and have less than 20k miles on them. What maintenance is there beyond oil changes? There might be some truth to the cars being of less popular trim levels but that is no reason to pass up a good car. You like Toyotas? You can get a 2019 Toyota Camry SE with less than 30k miles for around 18, 000 all day long (retail. They got hundreds of them in every color. They got RAV-4 and Tacomos too. If you ever wanted a good deal on a nearly new Toyota and can live with that 2. 5L I4 with the SE trim level then you are in luck. I think they will be good cars for people and I think you're wrong on this one.
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You need to look again Scotty. I'm not sure I agree with your statement on maintenance because many of these rental cars are less than 2 years old and have less than 20k miles on them. What maintenance is there beyond oil changes? There might be some truth to the cars being of less popular trim levels but that is no reason to pass up a good car. You like Toyotas? You can get a 2019 Toyota Camry SE with less than 30k miles for around 18, 000 all day long (retail. They got hundreds of them in every color. They got RAV-4 and Tacomos too. If you ever wanted a good deal on a nearly new Toyota and can live with that 2. 5L I4 with the SE trim level then you are in luck. I think they will be good cars for people and I think you're wrong on this one.
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S.J.'s
Scotty, I've got an '07 (built in '06) FJ Cruiser that sometimes doesn't downshift as soon as it should. I mainly notice it when coming to a faster stop. A few seconds later the vehicle jerks as it shifts into 1st. If I try to accelerate tonsoon after the quick stop the engine will rev up, but it will barely move. I've had the transmission pan dropped to replace the filter and some of the transmission fluid with Toyota transmission fluid. It seemed to help some at first, but it started doing it again before too long. What do you suggest doing next? It's paid for and my favorite vehicle, so I'm not about to go trade it in.
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Scotty, I've got an '07 (built in '06) FJ Cruiser that sometimes doesn't downshift as soon as it should. I mainly notice it when coming to a faster stop. A few seconds later the vehicle jerks as it shifts into 1st. If I try to accelerate tonsoon after the quick stop the engine will rev up, but it will barely move. I've had the transmission pan dropped to replace the filter and some of the transmission fluid with Toyota transmission fluid. It seemed to help some at first, but it started doing it again before too long. What do you suggest doing next? It's paid for and my favorite vehicle, so I'm not about to go trade it in.
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Yeahsure
I bought a car recently 3 years old 1 owner and 13, 000 miles. I read that used car prices dropped 12% in April. Biggest drop since 2008 so I figured it might be a good time to look and it was. At some dealerships I saw the price drop on some cars I was looking at by 1000 or more in a single week. I'm glad I got it when I did because people have started buying up used cars again. With my search criteria one of the I looked at pulled up 43 vehicles of the same make and model in the last week of April. I looked again a few days ago and there were only 9.
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I bought a car recently 3 years old 1 owner and 13, 000 miles. I read that used car prices dropped 12% in April. Biggest drop since 2008 so I figured it might be a good time to look and it was. At some dealerships I saw the price drop on some cars I was looking at by 1000 or more in a single week. I'm glad I got it when I did because people have started buying up used cars again. With my search criteria one of the I looked at pulled up 43 vehicles of the same make and model in the last week of April. I looked again a few days ago and there were only 9.
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derSpeed
Two weeks ago, I was considering a 2019 luxury vehicle with 11, 0000 miles that was at a local dealership. It was a prior rental and It was priced 6, 000. 00 less than any other I could find. It also had more options than any of the others. One day the dealership lowered the price another 1, 000. 00, so I decided to check it out. It sold by the time I got to the dealership. I know it was a great price and had a lot of warranty left. So, there are good deals out there if you don t mind buying a rental. Definitely have them checked out first.
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Two weeks ago, I was considering a 2019 luxury vehicle with 11, 0000 miles that was at a local dealership. It was a prior rental and It was priced 6, 000. 00 less than any other I could find. It also had more options than any of the others. One day the dealership lowered the price another 1, 000. 00, so I decided to check it out. It sold by the time I got to the dealership. I know it was a great price and had a lot of warranty left. So, there are good deals out there if you don t mind buying a rental. Definitely have them checked out first.
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Sylvan
I don't understand the fascination/amazement re. the toyota 8 speed transmission. GM and Ford have a 10 speed. ZF has an 8 speed and a 9 speed (also transverse. All these transmissions are software controlled, and that software makes a HUGE difference in transmission performance and feel and which will likely also play into long-term reliaiblity. The toyota drive modes are changing the program controlling the transmission (and likely a few engine parameters as well, likely including but not exclusively the throttle position mapping.
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I don't understand the fascination/amazement re. the toyota 8 speed transmission. GM and Ford have a 10 speed. ZF has an 8 speed and a 9 speed (also transverse. All these transmissions are software controlled, and that software makes a HUGE difference in transmission performance and feel and which will likely also play into long-term reliaiblity. The toyota drive modes are changing the program controlling the transmission (and likely a few engine parameters as well, likely including but not exclusively the throttle position mapping.
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CR7659
If a large number of used cars hit the market all at once, all used cars would command lower prices. It's kind of like that now, not because there's more cars out there but because demand is low. That's why new cars are coming with 0% for six months or no payments or whatnot. But there's always a bottom, there's enough people with big pockets to buy fleets of cars to speculate on that they will average out into a range. If you can get in and buy one when they do (think auction, you might get a good deal.
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If a large number of used cars hit the market all at once, all used cars would command lower prices. It's kind of like that now, not because there's more cars out there but because demand is low. That's why new cars are coming with 0% for six months or no payments or whatnot. But there's always a bottom, there's enough people with big pockets to buy fleets of cars to speculate on that they will average out into a range. If you can get in and buy one when they do (think auction, you might get a good deal.
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Joe
i bought my Chevy Impala Limited LT as my first car from Enterprise Car Sales in 2016 at 37, 839 miles. It s 2020 at 86, 589 miles now. Yes I done maintanence, oil changes, change brakes and rotors, change engine air filter, change the spark plugs, drain and fill the transmission fluid, coolant drained and filled, and battery changed. I did also pay for some work like an alignment, new tires and ac condenser. So far I been lucky to own my car with no major issues or super expensive repairs so far.
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i bought my Chevy Impala Limited LT as my first car from Enterprise Car Sales in 2016 at 37, 839 miles. It s 2020 at 86, 589 miles now. Yes I done maintanence, oil changes, change brakes and rotors, change engine air filter, change the spark plugs, drain and fill the transmission fluid, coolant drained and filled, and battery changed. I did also pay for some work like an alignment, new tires and ac condenser. So far I been lucky to own my car with no major issues or super expensive repairs so far.
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drwisdom1
Hertz and the other traditional car rental companies are in big trouble. Years ago they let Enterprise take over non-airport based vehicle rentals, a simple business they should have dominated. Then they let Uber and other ride-sharing services cannibalize their business, a more complex business they could have dominated. Now their customers have evaporated leaving the car rental companies with debt and parked vehicles.
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Hertz and the other traditional car rental companies are in big trouble. Years ago they let Enterprise take over non-airport based vehicle rentals, a simple business they should have dominated. Then they let Uber and other ride-sharing services cannibalize their business, a more complex business they could have dominated. Now their customers have evaporated leaving the car rental companies with debt and parked vehicles.
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