Key Takeaways
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- Hertz has begun selling its used vehicles directly to consumers through Amazon’s automotive marketplace, aiming to boost profits and convenience.
- Buyers can browse and purchase cars online and pick them up at Hertz locations in Dallas, Houston, Los Angeles, and Seattle, with plans to expand to 45 U.S. locations.
- Hertz currently sells about one-third of its former rental cars directly to consumers via its lots and website, but most sales still go through auctions or dealers.
- The partnership with Amazon follows Hertz’s expansion of its “try before you buy” program to 100 cities and increased digital sales efforts through platforms like Carvana and Autotrader.
- Analysts estimate retail sales generate an additional $1,000 to $1,500 per vehicle for Hertz, improving profitability.
- Amazon has been gradually entering the car market, including new car sales through Hyundai and recruiting dealers to list used vehicles on Amazon Autos.
What’s Happening?
Hertz is leveraging Amazon’s online platform to reach more retail buyers directly, enhancing the car-buying experience with digital convenience and physical pickup options. This move is part of Hertz’s broader strategy to increase margins on used car sales amid evolving consumer preferences.
Why Does It Matter?
Direct-to-consumer sales through Amazon could reshape how used cars are sold, challenging traditional dealership models and expanding digital retail in the automotive sector. For Hertz, this strategy aims to capture higher profits and meet customers where they shop.
What’s Next?
Hertz plans to roll out the Amazon Autos sales program to more locations nationwide. The company will continue to innovate in digital sales and customer experience to capitalize on growing online car shopping trends.
