You can buy a Tesla from Hertz for under $20,000, but you

If you want an electric car and like a good deal, Hertz has a fleet of depreciated Teslas and Chevys for you, but buyer beware

Hertz wants to move some of its all-electric inventory, but it can’t act fast enough after posting a $1.3 billion loss in the third quarter and taking a $1 billion impairment charge on the loss of value in its electric vehicle fleet. However, Hertz’s misstep in the EV market might be a win for you (or a friend), as the rental car giant is clearing out old EVs for under $20,000, and in many cases, for less. Less than $15,000.

More: Hertz in trouble after electric-car gamble, to sell 30,000 electric cars by year-end

On the surface, these discounts may seem tempting, but as always, the devil is in the details. As of this writing, Hertz has a dozen Tesla vehicles for sale for under $30,000. The vast majority were priced under $25,000, and four were under $20,000. These deals appear to be somewhere in the middle ground, though.

High mileage, high risk

For example, cars under $20,000 have more than 120,000 miles on the odometer. That puts them well beyond Tesla’s 8-year/100,000-mile limited warranty on the battery and drive unit (for rear-wheel-drive models). What seems like a bargain at first glance can quickly turn into an expensive nightmare if the battery decides to stop using it. Battery replacement in electric cars and plug-in hybrids is very expensive. Be extra careful, as we’ve heard battery replacement prices for the RWD Model 3 typically start at $13,000.

value question

The best options in Hertz’s clearance fleet appear to be Teslas priced between $20,000 and $25,000. Many of them have about 60,000 miles on them and some have as little as 27,583 miles. these cars should The battery is still covered under Tesla’s warranty, but you’ll need to verify the specifics before signing on the dotted line. Additionally, Hertz offers a 12-month, 12,000-mile powertrain warranty. Elon Musk may think a $25,000 Tesla is “meaningless,” but we see some value in these used examples.

Why the new Tesla might be smarter

However, past that point, especially when your price hits $30,000, you’re probably better off buying a new one if you qualify for any federal and state rebates. These rewards vary based on your location, income, and vehicle selection. In Massachusetts, for example, qualifying buyers can take advantage of a $7,500 federal tax credit plus an additional $3,500 state electric vehicle rebate (both subject to income and MSRP restrictions) for a total savings of $11,000.

In addition, Tesla currently offers 0% APR financing deals for up to 60 months with a minimum down payment of 20%, and you can pre-apply for a $7,500 federal tax credit if you qualify.

That means you could drive a brand-new Tesla Model Y Long Range for $37,000 before taxes and fees, not to mention paying off most of it in 60 months with zero interest. compare Hertz quote The decision becomes more nuanced when the 2022 Tesla Model Y Long Range comes with a range of 46,883 miles and a price of $29,364 before tax. Depending on your situation, the price difference might justify buying new instead of used—or at least give you pause before buying into Hertz’s clearance inventory.

Plenty of cheap electric cars

If you don’t fancy buying a used Tesla, Hertz also offers some other cheap electric vehicles. There are so many Chevrolet Bolt models that it’s impossible to choose just one among the more than 100 Chevrolet Bolt models available. The good news is that almost any trim or option is available. Most of them also sell for less than $15,000.

But that’s not all. For those who prefer something a little more upscale, Hertz also offers a handful of Volvo C40 Recharge models priced under $30,000 with, in most cases, less than 20,000 miles, as well as several with under 15,000 miles priced under $30,000 USD Mercedes-Benz EQB.

Not convinced yet? For the real bargain hunter, how about two Hyundai Kona Electric crossovers currently on sale for under $13,000? Sure, they each have over 100,000 miles, but they also qualify for tax credits. These deals are now open to interested parties.

Due diligence required

What’s the bottom line? Hertz’s loss may be your gain, but it’s crucial to err on the side of caution and do your homework, especially when it comes to battery warranties. These cars may save you money upfront, but as with any used car (especially electric cars), future maintenance and battery life should play a big role in your decision. This type of deal may feel like a steal, but only if you know exactly what you’re buying.

Additional reporting by John Halas