The major fallout of a possible Hertz bankruptcy, which may reportedly begin in a matter of days unless the rental giant comes up with about $400 million, could mean liquidating more than half a million rental cars—a move that could temporarily flood the already overflowing used car market.
While the rental chain could still avoid bankruptcy and an eventual sale of over 560,000 vehicles it keeps in its U.S. fleet, in addition to just over 200,000 vehicles in its international operations, it has been selling some of its higher-value vehicles—mirroring a move made by Avis weeks earlier also aimed at letting go some parts of its fleet to shore up its cash reserves.
What does this mean for those looking for some early deals on performance cars?
As Jalopnik has discovered, Hertz is selling some 650-hp 2019 Z06 Corvettes, all finished in a very yellow color with black stripes. A number of these have been listed with asking prices in the $60,000 neighborhood. That's more than $20,000 off a 2019 Z06's starting price of from $81,000 to about $95,000 for even better equipped, kitchen-sink models, as Jalopnik notes.
There are a few caveats here, of course: The Z06 Corvettes in question are all automatic transmission equipped, because they were all aimed at rental fleet usage (and we all know what that means for clutches), and there are also some miles on them. Additionally, this effort is taking place quite early in what could be a very long summer of rental car companies cutting loose parts of their fleets, so the deals offered at the moment are by no means the most desperate we're likely to see. Also, we have to wonder about the effect the debut of the midengine Corvette Stingray, a long-awaited automobile you might have heard about, has on all low-mileage 2019 Corvettes—we could be seeing just the tip of the iceberg in the decline of used Corvette values right now.
And we shouldn't overlook the fact that when it comes to fairly fresh used Corvettes, we could still be in the early stages of a gradual mass sell-off of "expensive toys" bought over the past five years going up for sale in a vastly different economic climate. This means those who bought sports cars during the longest economic recovery in modern times could be looking to cut them loose just to get some cash in their pockets, and would be willing to take quite a hit on the residual prices of all sports cars, not just Corvettes.
If you feel like you've been seeing a lot of Harleys for sale in people's yards, it's not just in your town.
Speaking of those used car values, they're likely to be in flux for quite some time as the used car market is expected to swell quite dramatically, in a manner perhaps not seen in ages. The fleet downsizing by rental giants is not likely to help matters, whether it happens now or months down the road. All rental giants are now seeking to "right-size" their fleets—a handy corporate euphemism—for the coming years in which the airline industry could operate with a very different number of monthly travelers.
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