Hertz’s Tesla Disposals Propel 35% Growth in Used EV Sales
Used EV sales vaulted 35% to 378,140 vehicles in 2025, with January volumes up 21% to 31,503 units as resale prices drop. Hertz’s large-scale Tesla disposals boosted secondary-market EV supply, narrowing the premium over gasoline counterparts to $1,376 in January.
1. Used EV Market Growth
Pre-owned electric vehicle sales reached 378,140 units in 2025, up roughly 35% year-over-year, while January volumes alone rose 21% to 31,503. Steep depreciation and advances in battery and software technology have narrowed costs with comparable gasoline models, drawing price-sensitive buyers.
2. Hertz's Tesla Sales Impact
Hertz accelerated the infusion of affordable EVs into the secondary market through large-scale sales of its Tesla Model 3 and Model Y fleet. The rental firm’s disposals accounted for a significant share of increased inventory, easing supply constraints and underpinning broader market expansion.
3. Price Dynamics in Pre-Owned EVs
The premium for used EVs over gasoline counterparts compressed from $2,591 in December to $1,376 in January, reflecting rapid depreciation and higher volume of newer technologies entering the market. Over-the-air updates and expanded charging networks continue to mitigate ownership concerns.
4. Outlook for Hertz's Secondary Market
Industry forecasts expect further inventory gains as lease returns and trade-ins accelerate, potentially boosting Hertz’s transaction volumes and margins in its used-car segment. This trend may enhance profitability if the company maintains competitive pricing and fleet management strategies.