Car subscription services have been a thing for years now, including Hertz, which costs $ 599 per month at least. Hertz launched its program in 2019, before all that bankruptcy stuff. Hertz said this week that it becomes national with the program.
The subscription program, called Hertz my car, has only been available in Austin, Texas, and Atlanta since its launch last year, but you can now get it at any Hertz store.
Like other auto subscription services, Hertz claims theirs is all-inclusive, meaning it includes liability insurance, roadside assistance, and insurance to cover damage to the vehicle, although damage insurance to the vehicle is extra for the cheapest level. These levels are:
According to AAA, the average annual cost of a new car – including insurance rates, license and registration fees, gasoline, maintenance, depreciation and interest charges on loans – is $ 9,282 per year, or $ 773 per month, which suggests that the first level of Hertz might be a bit of a big deal. Except that AAA also says that the average annual cost of a new small sedan – which Hertz offers in this tier – is actually over $ 7,114 per year, or just over $ 592 per month, slightly less than that. that Hertz offers.
And Hertz doesn’t cover gas like the AAA average does. Plus, the AAA rating is an average, which means you can find things cheaper than that, and probably a lot cheaper.
The differences become more pronounced when you compare the other levels. For example, AAA says that a new small SUV costs an average of $ 8,394 per year or $ 699.50 per month, while Hertz offers the same car for $ 999 per month. For pickups, meanwhile, AAA says a new pickup costs an average of $ 10,839 per year, or $ 903.25 per month, almost $ 400 less per month than the $ 1,399 per month you would pay. Hertz.
What surprises me about all of these numbers is that buying a new car is usually not the brightest idea to start with, given how new cars depreciate as soon as you leave them. But according to AAA figures, Hertz’s subscription program is an even worse deal financially.
A feature of the Hertz program that could always be a selling point: Hertz My Car customers can swap vehicles twice a month, which means you can – at levels 2 and 3 – get a truck if you need it before. to return it for something else. You can do this at different Hertz locations as well, which gives more flexibility, although I have a bit of doubts about the magnitude of the benefit.
I’m not convinced that auto subscription services won’t be a thing in the future but none of them so far has really been convincing about whether they should exist. For Hertz, this mostly looks like another attempt to save his business; it also offers car rental “over several months”, apparently trying everything he can to get you into his cars. Due to increased demand in the rental and second-hand markets, there is it looks like Hertz will probably survive for now; long term is an enigma.