Hertz Bankrupt

[NO2]

Enterprise has a different business model ; short term local rentals mostly with less reliance on travelers. Hertz used car prices seemed very high to me, more than the 1 owner dealer trade ins. Considering that their cars tend to be beat up, they should be cheaper. Even so, I doubt they will survive.

 

[csandste]

Originally Posted by NO2
Enterprise has a different business model ; short term local rentals mostly with less reliance on travelers. Hertz used car prices seemed very high to me, more than the 1 owner dealer trade ins. Considering that their cars tend to be beat up, they should be cheaper.

Might be that Enterprise's dominance in HQ St. Louis makes their used car prices much higher. They have a dozen used car stores in Metro St. Louis, vs. one for Hertz. On low end cars like a Kia Soul they run a couple of thou higher than Hertz. Remember, most one year old used cars on the market as used cars are rental returns whether you buy them direct or not. If they're not a rental return, what's the story behind the trade in-- a lemon? Unlike lease returns, the companies are at least putting minimal maintenance on them. Not sure about that lease return.

 

[CKN]

I have had nothing but positive experiences renting from Enterprise.

 

[fdcg27]

Originally Posted by Shannow
The world is currently in an induced coma, and the people who initiated it have a duty of obligation to carry them through that period.

While I don't disagree with you, I'd have to say good luck with that.
Hertz only represents the beginning among larger firms, with many small ones already beyond revival.
This may well be the worst economic contraction of the past century and that would still be true even in the absence of any induced coma.

 

[UncleDave]

The car rental market was already in trouble before this began. Covid -19 was the final blow to Hertz in this case.

The damage started with the rise of very cheap ride sharing services.

In talking with porters and valets at hotels in towns I travel to. I always ask them how is business how busy are you and the story has been the same -

" We used to be slammed 4-5 years ago- now everyone just uses Uber/ Lyft from the airport and dont bother renting cars anymore"

I can certainly second that, compared to a regular cab company it was way cheaper to rent a car, and now its cheaper just to summon a ride when and where you need it with major cities adding a litany of car rental taxes and inner city hotels charging 4-50 bones a night sometimes to park a car for you the value proposition has flipped. Ive had the parking bill equal or surpass the car rental bill for san francisco trips.

Of course rural is different, but inside a city I stopped renting cars altogether.

 

[JTK]

I wouldn't expect any spectacular give aways with their car sales, especially if they're under chapter 11. Their vehicles are going to continue selling right along at the market rate. It's not like it's some obscure product line with no demand.

I feel for Hertz employees. We'll all feel the swirling of the bowl.

 

[CT8]

My wife used to work at Hertz doing payroll she was happy with the way Hertz treated her. I wonder if Hertz will go non union.

 

[53' Stude]

Not a chance. In fact the 3 auto tech friends of mine that Hertz severenced had their own union. That union had a meeting with hertz corporate and decided to lay off their workers. Enterprise isn't union anymore, thank god

 

[53' Stude]

Originally Posted by CKN
I have had nothing but positive experiences renting from Enterprise.


Good to hear, nothing wrong with Enterprise

 

[WagonWheel]

Their used prices seem to be competitive, at best. So I don't see how they are going to drastically impact the used market unless they alter their pricing strategy.

This reminds me of when Circuit City liquidated, the store inventory was sold to a third party that sold it above market price, without returns of course. Just the prospect of a deal was all that it took to drive the herd to the store.

Provided financing is available, a clever marketing plan could help them unload inventory in short order. A lot of their inventory seems to be models popular with subprime buyers, so that could be an interesting dynamic.

 

[WagonWheel]

Originally Posted by 53' Stude
Originally Posted by CKN
I have had nothing but positive experiences renting from Enterprise.


Good to hear, nothing wrong with Enterprise


A relative works for Enterprise … he has a similar view. Shuffles cars around the state to different off airport locations. They do a lot of business to people getting their cars repaired at the body shops. Cars are well maintained, and only best go to the used lot. Next tier is sold to local dealers , the the lowest condition vehicles go to auction.

 

[csandste]

Hertz has three ways of getting rid of cars:
1. Sell them through their stores-- no many of those, one in St. Louis, maybe 2-3 in Chicago metro. Kind of rare. These are called certified cars.
2. Sell through rent to own. These sold cheaper when I was buying. You can see cars coming on market in a week or so. I used #1 cause I needed a car immediately. My girlfriend used #2 and like me (and my daughter who bought certified) was well pleased.
3. Sell to the open market.

Think everyone gets rid of cars through #3, but IIRC most Enterprise goes through their stores (at least in St. Louis) and Avis uses the rent to own model exclusively at least in this market. Avis's prices are closer to Hertz than Enterprise but the operation is far smaller so there's way less selection than Hertz, or of course, Enterprise. Enterprise prices are close to a lot of different retailers with no negotiation. Other than Avis, I've found that the only prices close to Hertz are the occasional new car dealer looking to unload a non-retailed car. Got a pretty good deal about four and a half years ago on a Buick Encore at a Ford dealer after looking for months. Not as good as Hertz, though.

Thought Hertz and Avis were making a push on the local market about twenty years ago. Rented a Budget/Avis car a couple of years ago and Budget's prices were the best but found out after making the non-refundable deal that their store had one person in it and I had to walk about 2.5 miles to get my car. Since I exercise daily I game for it, but Enterprise would never do a thing like that. Always a lot of bright energetic looking young people waiting around (probably not since March) for good customer service. I did rent one or two Hertz locally in the early zeros and thought Hertz was very aggressive at getting business and had slightly newer product (and they picked me up) at a better price. Don't know if that's the case any longer.

Enterprise's retail store count in metro St. Louis might be pretty close to Hertz's nationwide.

 

[gfh77665]

Originally Posted by Shannow
The world is currently in an induced coma, and the people who initiated it have a duty of obligation to carry them through that period.

The Chineese. They owe us.

 

[The motor guy]

Too bad. Never used them, but that had to be way
better than enterprise. We'll pick you up! Just only be 2 miles away and plan that break down 4 days in advance!

 

[PandaBear]

Originally Posted by gfh77665
The Chineese. They owe us.

Good luck with that. Consider the trade war going on and they are still recovering on their own, we have to print our way out of this induced coma this time. Hyper inflation is coming very very soon.

 

[PandaBear]

Personally I don't have any problem with Hertz, Enterprise, or Avis in cars or service quality, the one I have problem with are usually the lower tier brands that aren't the flagship / business travelers, they always try to pull a "we don't have your car so you must downgrade, or pay to upgrade" on me.

I've shopped Hertz's used car lot and they are pretty good condition for a reasonable price (no haggle). I'm sure if you overlook the best condition you can find a better deal on your own, but that's not how they sell their cars so I think they are fair. The way I see their bankruptcy is the public ownership in stock market is always pushing for high debt, stock buyback, high dividend, and risky bets (lease a lot of vehicles and get stuck with them in a downturn). This bankruptcy is to get out of these lease obligation and let the manufacturers take back the vehicles, layoff employees, get out of non profitable locations' lease, etc. The owners took a hit but the management get out of jail free.

Screw Wall Street and leverage buy out, they always ruin perfectly fine companies with their greed. I think private ownerships and family businesses have their places at least in the long term sustainability. The manufacturers may delay production start or reduce shifts due to social distancing anyways, so the market may digest some of these used car return or future fleet deliveries cancellations.

 

[JustinH]

Originally Posted by UncleDave
The car rental market was already in trouble before this began. Covid -19 was the final blow to Hertz in this case.

The damage started with the rise of very cheap ride sharing services.

In talking with porters and valets at hotels in towns I travel to. I always ask them how is business how busy are you and the story has been the same -

" We used to be slammed 4-5 years ago- now everyone just uses Uber/ Lyft from the airport and dont bother renting cars anymore"

I can certainly second that, compared to a regular cab company it was way cheaper to rent a car, and now its cheaper just to summon a ride when and where you need it with major cities adding a litany of car rental taxes and inner city hotels charging 4-50 bones a night sometimes to park a car for you the value proposition has flipped. Ive had the parking bill equal or surpass the car rental bill for san francisco trips.

Of course rural is different, but inside a city I stopped renting cars altogether.


Great post I couldn't agree more. There was a time when I used to rent a car every time I landed at Mccarran, just to park it in a hotel parking lot in Vegas.

It's just another liability to me. I'd gladly pay for uber/lyft and let someone else drive and I have no liability.

We are doing a weekend trip in Denver next month and I probably won't rent a car there either.

 

[53' Stude]

Originally Posted by motor_oil_madman
Too bad. Never used them, but that had to be way
better than enterprise. We'll pick you up! Just only be 2 miles away and plan that break down 4 days in advance!

That is the biggest load of b.s. I have ever read.

Somedays I wonder how much stuff is made up for attention. SMH!

 

[UncleDave]

Originally Posted by JustinH
Great post I couldn't agree more. There was a time when I used to rent a car every time I landed at Mccarran, just to park it in a hotel parking lot in Vegas.

It's just another liability to me. I'd gladly pay for uber/lyft and let someone else drive and I have no liability.

We are doing a weekend trip in Denver next month and I probably won't rent a car there either.

YUP

I did that for years for trade shows in Vegas , renting a car when I flew only to park it all weekend then drive back to the airport.

Not worth bothering anymore.

When I was a kid with a few dollars and no ride Hertz would rent me a cool set of wheels, once I got a turbo supra for a week - that was fun and more car than I could buy, but I could work a deal with the guys at Hertz. I grew up with Hertz, depended on them and they took care of me. This bums me out.

Once we went from looking for, asking for, and waiting for rides - vs.- being able to summon them at will, the game changed.

UD

 

[RazorsEdge]

Originally Posted by motor_oil_madman
Too bad. Never used them, but that had to be way
better than enterprise. We'll pick you up! Just only be 2 miles away and plan that break down 4 days in advance!

As someone who has rented many of the Enterprise vehicles and not one issue.