Hertz to Peddle Pre-Owned Vehicles on Amazon Platform in the US Market
In a significant move, rental car giant Hertz has partnered with Amazon to sell pre-owned vehicles online. The partnership aims to help Hertz reduce operating costs and increase profit margins.
Initially, the sale will primarily involve popular models such as Chevrolet Bolts, Tesla Model 3s, and Polestar 2s. These vehicles are available for free pickup at Hertz's Seattle Auto Sales location, with plans to expand the program to Hertz's entire network of 45 sales locations nationwide.
Interestingly, electric vehicles currently do not show up as part of Hertz's inventory on Amazon Autos, but this is expected to change in the future. In Seattle, models available on Amazon Autos include the Ford Edge, Chevrolet Equinox, GMC Terrain, Volvo XC40, Volkswagen Jetta, Toyota Corolla, and Nissan Sentra. In Los Angeles, Hertz Car Sales locations advertise a total of 319 vehicles on Amazon Autos, with a larger proportion of convertible Ford Mustangs.
Amazon Autos has also added Hyundai to its offerings in the US. However, plans for the expansion of electric vehicles in Hertz's inventory across various U.S. cities remain undisclosed at this time.
It's worth noting that Hertz has previously sold off 30,000 electric vehicles due to a lack of customer interest. This decision led to a significant financial loss for the company, with Hertz reporting a loss of U.S. $2,9 billion in 2024.
Following the announcement of the Amazon partnership, Hertz's shares climbed 7%. The company has replaced these electric vehicles with more popular gas-powered models, signaling a shift in strategy to cater to customer demand.
This partnership is set to revolutionise the used car market, offering customers a convenient and accessible platform to purchase Hertz's used cars. The partnership will initially be available in Dallas, Houston, Los Angeles, and Seattle, with plans to expand to more cities in the upcoming weeks and months.
