Considering trying an electric vehicle? Renting one can be an affordable option. However, the availability of electric cars for rental purposes might soon become limited.
Electric vehicles have posed financial challenges for rental companies, particularly impacting Hertz. In January, Hertz had to revise its plans to acquire 100,000 Teslas due to a rapid decline in the cars’ resale values, catching the company off guard.
Hertz’s experience has had a ripple effect on the rental car industry. Many companies are now attempting to sell off electric vehicles at significant discounts, causing a slowdown in new purchases.
According to S&P Global Mobility, over 4 percent of cars sold to rental companies in the previous year were electric. However, this year, the percentage has dropped to just 1.4 percent.
In theory, renting an electric vehicle offers consumers a chance to experience and get comfortable with eco-friendly cars that produce zero tailpipe emissions. Stephanie Valdez-Streaty, the director of industry insights at Cox Automotive, emphasizes the potential of rental companies in influencing consumer behavior towards adopting electric vehicles.
Valdez-Streaty acknowledges that rental firms have recently been offering attractive deals on electric cars, but this trend may not continue as companies reduce the number of electric vehicles in their fleets.
