Hertz teams up with Amazon to sell certified used rental cars

Hertz's stock surged up to 7% following the partnership announcement
Hertz car rental logo is seen in this illustration taken June 27, 2022. — Reuters
Hertz car rental logo is seen in this illustration taken June 27, 2022. — Reuters

Amazon and Hertz have partnered to sell certified used rental cars through Amazon Autos, a major step to transform the online car-buying experience.

Customers will be able to browse, finance, and buy cars online through the partnership, which was revealed last week, and then pick them up from a Hertz Car Sales lot in one of four launch cities: Dallas, Houston, Los Angeles, and Seattle.

Amazon and Hertz car rental programme  

The programme is anticipated to spread to all 45 Hertz Car Sales locations across the country with a wide range of cars with no-haggle pricing, a 115-point inspection, warranty coverage, and a seven-day return window.

"We are thrilled that Hertz Car Sales will be joining the hundreds of franchised dealers in our store, adding thousands more vehicles for customers to pick from," said Amazon Autos Global Head Fan Jin.

Hertz's stock has already benefited from the partnership; following the news, shares increased by as much as 7%.

Nonetheless, stock declines for rivals Carvana, CarMax, and CarGurus highlighted how Amazon's arrival might change consumer expectations for online auto purchases.

Although this change is an expansion, CNET senior writer and auto industry expert Antuan Goodwin says it's "not a game changer".

"If Amazon were shipping cars to your house, this would be crazy, but you still have to get to the dealership within three days. It's just a different portal to the same used-car system," Goodwin said.

The partnership is anticipated to strengthen Amazon's position in the auto retail industry by offering customers a greater selection of cars and a more efficient purchasing experience.