Hertz Expands Online Car Buying Process to Enhance Customer Experience

What's Happening?

Hertz, a prominent rental company, has announced a significant update to its online shopping platform, HertzCarSales.com. This update will allow customers to complete nearly the entire car buying process online, including securing financing and receiving trade-in offers. Previously, the website only provided vehicle listings, with most transactions occurring at Hertz's 45 retail locations across the United States. CEO Gil West emphasized that this new e-commerce platform is a major advancement in modernizing customer service, aiming to make retail the primary channel for car sales. The company plans to launch a promotional campaign featuring football star Tom Brady to highlight these changes. This initiative is part of Hertz's broader strategy to improve vehicle resale values and expedite fleet turnover, which is crucial for rental companies. Hertz currently manages a fleet of approximately 560,000 vehicles, with about 80% being less than a year old.

Why It's Important?

The expansion of Hertz's online car buying process is a strategic move to enhance its retail presence and improve profitability. By enabling customers to complete more of the purchasing process online, Hertz aims to maximize resale values and streamline fleet management. This shift is particularly important as the company continues its recovery from a 2020 bankruptcy filing due to the pandemic's impact on travel demand. The new platform could also reduce reliance on wholesale auctions, which typically yield lower prices. By focusing on direct-to-consumer sales, Hertz can potentially increase profit margins and strengthen its competitive position in the car rental and sales market. The partnership with Amazon Autos and the promotional campaign with Tom Brady further underscore Hertz's commitment to innovation and market expansion.

What's Next?

Hertz's updated online platform is expected to attract more consumers looking for a convenient car buying experience. The company's focus on retail sales may prompt competitors to enhance their own online offerings to maintain market share. Additionally, the success of this initiative could influence Hertz's future strategies in fleet management and customer engagement. As the company continues its turnaround plan, it will likely explore further innovations to boost profitability and market presence. Stakeholders, including investors and industry analysts, will be closely monitoring the impact of these changes on Hertz's financial performance and market dynamics.