I guess the company isn't doing to bad, car sales is reopening.
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The used car markets for 2019-20 model year cars is saturated. Values have fallen significantly since Q3 of 2020 and show no signs of imporving. Since Hertz cannot get the dollars they need from auctions they think they can move them with a higher margin internally which is the wrong move. Another issue is now with cars sales closed they have no profitable stream to dispose of the cars rejected or not eligible for auction due to damages that may have occured to the car. So buyer beware you might see some fantastoc deals but the car may have had some major structural repairs .
They have to sell about 200,000 cars for the new ones that we are buying.
Hertz is car rental not car sales. Car sales coming back is not a good sign. The need to move more cars to sell and thisis a huge red flag. They are trying to delete as many cars before the final steps of the bankrupcy occurs and the courts take owbership of it all. This tells me the end is getting closer. Paul need to pad his financialswith some car sales revenue so he can max out his final bonus.
Too bad they lost a lot of experienced and dedicated Car Sales staff.
Realistic? They could have sold the inventory to any dealers just like last time. They aren't going to pay a staff, building leases, and dealership coasts just for sh–s and giggles.
Or more realistically, the revenue is declining further, they have too many cars, and they need to sell them in a desperate bid to raise cash and improve profitability(!)?
Yep, I've heard Feb-Mar depending on location and staffing. A positive outlook for the company to be able to reinvest in it.
Sounds like March is the restart date