Hertz sells thousands of used cars at competitive prices due to bankruptcy

A few weeks after filing for protection from bankruptcy on may 22, the company car rental Hertz sells cars in its fleet at reduced prices. About it writes USA Today.

Hertz продает тысячи подержанных автомобилей по выгодным ценам из-за банкротсва

Photo: Shutterstock

As of Saturday morning, June 13, in the range of Hertz were thousands of used cars on the website HertzCarSales.com. The number of cars for sale in the region depends on the location used in the search, the vehicles are delivered free of charge to a distance of 75 miles (120 km).

According to bankruptcy lawyers in Braintree, pandemic coronavirus has forced several companies who survived the crisis to declare bankruptcy to try to survive. J. C. Penney, Neiman Marcus, Tuesday Morning are among the companies that declared bankruptcy since the beginning of the pandemic. Competitor Hertz Advantage Rent A Car filed for protection from its creditors on may 26.

The current fleet of Hertz has about 700 000 vehicles, the cost of which has decreased significantly due to a sharp fall in the price of used cars because of the pandemic.

When searching on the website of Hertz within 1,000 miles (1 609 km) from Fort Lauderdale (FL), Saturday, June 13, 23 were available for more than 500 vehicles, including Hyundai Elantra SE Sedan in 2017, with a mileage of almost 71, 000 miles (112 000 km) at the cost of $7 597, the car was sold for $1 740.

Search within 1000 miles of Beverly hills (CA) on Saturday showed nearly 21,000 cars.

Outside 75-mile radius for free delivery, fee varies. Shipping from 76 to 200 miles costs $300, and within 600-800 miles cost of $1000.

According to the Declaration of bankruptcy by the end of March, Hertz Global Holdings Inc. has accumulated a debt of more than $24 billion, with only $1 billion

Since mid-March, the company, whose brands car rental also include Dollar and Thrifty, lost all income. The company reported that it had undertaken “significant efforts,” but failed to raise money, so in April started to miss payments to creditors.

In late March, Hertz lost 12 000 jobs and 4 000 were sent on vacation. This has reduced the purchase of cars by 90% and stopped all nonessential spending. The company said that these steps would save $2.5 billion a year.

Court of bankruptcy granted the request of Hertz on the sale of 246,8 million unissued shares Jefferies LLC with the aim of attracting new capital in the amount of $1 billion.