What's Happening?
Hertz has launched a nationwide online platform, HertzCarSales.com, allowing customers to browse, finance, and purchase used vehicles entirely online. This development is part of Hertz's strategy to expand its retail channels, which includes the Rent2Buy program. The platform offers vehicles often priced below market values, backed by a 12-month/12,000-mile limited powertrain warranty. The company has reported its best second quarter for retail vehicle sales in five years, attributing this success to the expansion of its retail channels and the new online platform.
Why It's Important?
The launch of Hertz's online platform represents a significant shift in the used car market, potentially increasing competition among car dealers. By offering a seamless online purchasing experience, Hertz is likely to attract a broader customer base, including those who prefer digital transactions. This move could pressure other car rental and sales companies to enhance their digital offerings. Additionally, the success of Hertz's retail strategy may influence the broader automotive industry to adopt similar models, potentially reshaping how used cars are sold in the U.S.
What's Next?
Hertz plans to continue expanding its digital capabilities and retail channels. The company has launched a national ad campaign featuring Tom Brady to promote its online platform. As Hertz continues to innovate, other companies in the automotive industry may respond by enhancing their own digital sales platforms. The success of Hertz's strategy could lead to further developments in online car sales, potentially setting new standards for the industry.
