When Rental Companies And EV Customers Clash

Many car rental companies are now choosing not to rent electric vehicles, as they are depreciating too quickly in resale value. Hertz, in particular, has scaled back on their plans to invest in 10,000 Teslas after the resale price of Teslas dropped through the floor, along with the value of Hertz’ electric vehicle fleet, which fell by $195 million. 

Hertz Vs Tesla

One major contributing factor to this problem, was a conflict between Hertz and Tesla. Hertz made a Solus deal, promising to only do deal with Tesla. However, they later added Polestar to the group. In spite of this, Tesla continued to sell Hertz cars, but later made a correction to Tesla pricing due to competition. Consequently, three weeks later, Tesla decided to reduce the price of their cars on the market. This slumped the value of the used vehicles in Hertz’ fleet. Hertz then had to document what the predicted value of the cars were going to be vs actual value. That created a stir in the market about the value of EVs. Although this problem was likely to have occurred regardless, the situation was exacerbated by Tesla’s decision to stitch up Hertz.

Lack Of Infrastructure For Electric Vehicles

Rental companies have also found themselves struggling with the lack of infrastructure for EVs, for example, the lack of chargers in rental car complexes at airports. This makes it difficult for car rental companies to recoup their costs when it comes to reselling their vehicles - making them not worth the time, money or effort for commercial businesses.

Customer Demand For EVs

On the flip-side, however, renting an electric vehicle is far more achievable than buying for most customers for several reasons. First of all, it allows customers not to be affected by the drop in resale prices. Customers often make a loss if they attempt to sell on their used electric vehicle, and replacing the battery is often more expensive than actually buying a brand new electric vehicle. By renting an electric vehicle, customers can avoid losing money, while enjoying the advantages of driving a low-tax, eco-friendly vehicle. 

Secondly, many customers are apprehensive about investing in an electric vehicle, due to the lack of infrastructure to support them, such as publicly-available electric vehicle chargers. This means that on top of the financial loss of reselling their electric vehicle, replacing the battery or buying a brand new car, they would most likely have to pay to install an electric vehicle charger on their property. However, if they choose to rent an electric vehicle, the electric vehicle will arrive fully charged, and they can simply return the car or use the rental company’s EV charging facilities when they run out of power. This option also gives customers the opportunity to ‘try before they buy’ - giving them the opportunity to suss out whether an electric vehicle is realistic for their lifestyle and the area in which they live. 

Similarly, maintaining an electric vehicle is more expensive than maintaining a petrol or diesel car. This is because there are fewer mechanics who are fully trained to work on an electric vehicle. However, by choosing to rent an electric vehicle, instead of buying it outright, the rental company takes care of all maintenance and the associated costs, making it more affordable for the majority of drivers. 

Renting an electric vehicle instead of buying it also offers the added advantage of being able to regularly swap out your EV for a newer model, allowing you to benefit from the latest advances in EV technology. 

Solutions To Issues With EV Rental Services

As a result of this divide, the demand for EV rental services is certainly there - but the supply is rapidly dwindling. So then, what’s the solution? Well, there are several rental companies that still offer EV rental, for example Zimbl. Zimbl offers a choice of daily, hourly, or longterm hire, and provides access to their own EV chargers, making it more flexible, cost-effective and practical than ever to drive an electric vehicle.

Alternatively, you could choose a salary sacrifice scheme such as EZOO, which offers all the advantages of electric car ownership, with the payment for the car simply deducted from your salary each month. This helps you to save on your National Insurance and tax, resulting in an overall saving of between 30-60%. Servicing and maintenance are included in the package, as well as 24/7 breakdown cover. And to top it all off, they offer flexible plans, from just 12 month subscriptions to 48 months (brand new lease). 

However, if you have rented an EV elsewhere, or you have already invested in an electric vehicle, and you are concerned about the lack of available charging points locally, worry not! One of our own, ZapMe provides 24/7 breakdown cover and mobile EV charging, allowing you to charge up your vehicle from dead, from anywhere in the country! So even in the most remote of locations, you no longer have to worry about charging your vehicle.

So, the EV rental industry might have hit a slight snag, but there are companies who are committed to overcoming this bump in the road - and they might just save you some cash in the long run.