Special Edition Hertz Corvette. Credit: Hertz
There has been much speculation about whether or not Hertz would be forced to sell off a lot of their vehicles in their quest to reorganize under bankruptcy.
The automotive press has been having a field day speculating on whether or not the dumping of these cars would crash the used car market.
Some answers are becoming clear, finally. So you donít have to, I read the filing by Hertz with the U.S. Securities and Exchange Commission. If you canít go to sleep tonight, just click here
The bottom line is Hertz has until December 31st to sell 182,521 of their vehicles, with the proceeds to be distributed to the companies owed money from Hertz. Overall, Hertz has roughly 500,000 total vehicles in its inventory.
What does this mean for future used car prices? In spite of what you will read elsewhere, the effect on prices, if at all, will be minimal.
First, they started the liquidation on June 1st when the bankruptcy was filed, so they are two months into this now. Some vehicles have already gone through the auction and others were sold through Hertz Used Car Sales lots.
Second, there are over 40 million used cars sold in America every year, this small percentage is not going to change anything to speak of.
Lastly, the used market has been suffering from a lack of inventory for a couple of months. The Hertz cars will do nothing more than get things on an even keel with years past. You can also assume Hertz is too smart to dump all these cars at once, rather spread them out so as not to cause a sudden drop.
The way I see it, this move is a non-event. Hertz will sell as many vehicles as they can itself, then slowly feed the auctions the rest. Donít get caught up in the ďfire saleĒ hype.
The question is whether or not to buy one of the special edition Corvettes we reported on here:
Talk about a future collectible! You can now get your hands on a special edition Corvette Z06 -- one made exclusively for Hertz, the rental car company, in honor of its 100th anniversary... More õ
It looks like there may only be three left.