WhichCar

Hertz Polestar and Tesla electric car rentals prove popular for extended test drives

International rental car giant Hertz says its increasingly electric fleet could help drive EV adoption now, and in the used market

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Snapshot

  • Hertz research: electric rental cars ideal 'try before you buy' experience
  • 59 per cent of respondents considering going EV next
  • Ex-rental cars will bolster second-hand market

New research conducted by Hertz has found 67 per cent of respondents considered renting a Polestar 2 or Tesla Model 3 as the perfect ‘try before you buy’ experience for an electric car.

This is unique from petrol or diesel rentals that are typically convenience- or business-related.

Of the respondents, 59 per cent said they were considering an EV as their next car, with cheaper fuel prices (78 per cent), reduced carbon footprint (75 per cent), keeping up with the times (63 per cent) and lower maintenance costs (33 per cent) reasons for switching.

These numbers demonstrate serious interest in the technology, especially when considering only two per cent of respondents owned an EV and fewer than five per cent had ever driven one.

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Hertz has signed deals internationally with electric carmakers Tesla and Polestar, and while these brands have become part of the street furniture in Los Angeles and Norway, in Australia the story is a little different.

Tesla has been making huge inroads – breaking into Oz's monthly top-10 sellers with its Model Y SUV – but what these start-up brands don't offer are traditional bricks-and-mortar dealerships, so the classic Sunday test drive is a little harder to come by. 

That’s where Hertz says it has the potential to step in, offering not only low-emissions vehicles for holidaymakers, but also extended test drives for prospective customers.

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“As a country, we are becoming more environmentally conscious. In fact, our research found that the vast majority (80 per cent) of Australians identify themselves as eco-conscious,” said Hertz APAC vice president, Eoin MacNeill.

“At Hertz, we’re prioritising providing our customers with the opportunity to travel more sustainably and the response to date has been excellent.”

Price the biggest barrier for EV adoption

One of the key barriers to adoption noted in Hertz’s research was the perceived price of EVs, with 70 per cent of respondents saying they believe electric cars are too expensive.

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It’s a story WhichCar sees playing out in comment's section discourse, and of course, Hertz will have a role to play in making EVs more affordable as rentals finish their fleet lives and move into the second-hand market.

The typical life cycle of a rental car, according to the company, is between 18-24 months of service with a cap of 50,000 kilometres. However, noting the lack of a combustion engine to maintain, MacNeill said that EV’s fleet lives could be extended.

“With an EV, there’s potential for us to extend the vehicle’s life to double that mileage, as the kilometres do not have the same wear and tear on an EV’s engine the same way it does with an internal-combustion engine (ICE) vehicle. This will be assessed over time once we have more EVs on fleet and have experience of the longevity.”

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Buying a second-hand car from a rental fleet is something that’s typically not advised – especially when it comes to ICE vehicles that may not have been treated as sympathetically by renters as a paying owner would.

Eoin MacNeill assured WhichCar that its Polestar and Tesla vehicles will be maintained at authorised repairers, with the 30,000km intervals of the Polestar observed and condition-based Tesla servicing completed as required.

Additionally, before sending the cars to auction Hertz has vowed to have their conditions assessed thoroughly.

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“Before EVs are sold on the used car market, they will undergo a thorough review which includes assessing battery health, how well the charging system is operating, the condition of the charge sockets, the condition and operation of any portable electric vehicle supply equipment (EVSE) and lastly, how well the EV operates in different driving modes.

“We want to ensure that consumers seeking to get into the second-hand EV market are able to purchase a vehicle that runs optimally.”

What else is holding back adoption?

Hertz’s research also found 52 per cent of respondents thought charging infrastructure was lacking, and that 28 per cent simply didn’t have enough knowledge of electric vehicles.

“We’re finding that customers who try our EVs, love them. Not just because of the environmental benefits, but also because the experience is helping them to dispel some of the predetermined myths they may have had about driving one”, MacNeill said.

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