Understanding Hertz's Fleet: Size and Scope

According to data as of August 2023, Hertz boasted an extensive fleet with approximately 500,000 vehicles within the United States and a global fleet of around 1.2 million vehicles. This impressive scale showcases Hertz's presence and influence in the rental car market. However, like any other business, Hertz must manage its fleet efficiently, ensuring the timely replacement and disposal of vehicles as they reach the end of their rental life cycle.

Inspection and Maintenance: Structured Process for Disposal or Resale

When Hertz vehicles come to the end of their rental life after a few years of use, they undergo a structured process aimed at optimizing the residual value of the fleet. This process includes several key steps to manage the lifecycle of the vehicles:

Inspection and Maintenance

The first step involves a thorough inspection for any damage or wear and tear. This ensures that the vehicles are in good condition before any further action is taken. Maintenance is also carried out to address any issues, ensuring the vehicles are safe and in optimal condition.

Auction and Market Utilization

Many of the vehicles that pass the inspection and maintenance stage are then sold at auction. This is a common practice in the rental car industry, as auctions provide a quick and efficient way to offload used cars to dealerships or wholesalers. These auctions are often well-attended, as they offer a wide variety of vehicles in different conditions, from excellent to reasonable.

Retail Sales

Some vehicles may be deemed suitable for direct consumer sales, which can be facilitated through Hertz's own used car sales program, branded as Hertz Car Sales. This program allows consumers to purchase used vehicles that have been thoroughly inspected and are guaranteed to be in good condition.

Recycling: Environmental Responsibility

Not all vehicles can be resold or auctioned. Those deemed unsuitable for resale may be sent to recycling facilities where valuable materials such as metals, plastics, and glass are recovered. This process not only ensures that the vehicles are disposed of responsibly but also contributes to environmental sustainability by recycling and reusing materials.

Managing the Fleet Efficiently

The structured process that Hertz employs helps them manage their fleet more efficiently. By following a clear chain of actions, Hertz can maximize the residual value of its vehicles, ensuring that they are put to the best possible use before being disposed of or resold.

For the latest statistics or specific details beyond August 2023, it is recommended to check Hertz's official reports or financial disclosures.

Fleet Ownership and Leasing

Part of Hertz's fleet is leased from manufacturers. These leased vehicles are returned to the manufacturers for repairs and maintenance before being sold as either certified or regular vehicles through the respective dealerships. These vehicles often leave the fleet with lower mileage or at a specific point in their lifecycle.

The other part of the fleet is 'owned' by Hertz. These vehicles are used until they accumulate higher mileage, at which point they are sold through Hertz or Thrifty sales outlets, or auctioned to dealers. Some vehicles continue to be used for long-term rentals with companies like Lyft and Uber, serving as reliable vehicles for drivers. When these vehicles reach the end of their lifecycle, they are then sold at auctions.

The diversity in how fleet vehicles are managed and disposed of highlights Hertz's strategic approach to maintaining an efficient and environmentally responsible fleet management system.