Looking to buy a car? Hertz is selling thousands of used cars in its fleet in bankruptcy at bargain prices
Weeks after filing for bankruptcy protection in accordance with Chapter 11 on May 22, Hertz, the car rental company, sells vehicles in its fleet at reduced prices.
As of Saturday morning, Hertz had thousands of used cars available on its HertzCarSales.com website. The volume of cars for sale in an area depends on the location of the search, and vehicles are delivered up to 75 miles for free.
The coronavirus pandemic has forced several companies that were tense before the crisis to file for bankruptcy in an attempt to survive. J.C. Penney, Neiman Marcus, Tuesday morning, are among the chains that have filed for bankruptcy since the pandemic began. Hertz competitor Advantage Rent A Car applied for judicial protection from its creditors on May 26.
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Hertz's current fleet consists of around 700,000 rental cars, the value of which has dropped sharply due to a sharp drop in used car prices due to a free fall in car sales as a result of the pandemic.
A search on the Hertz website within 1,000 miles of Fort Lauderdale, Florida found more than 23,500 cars available on Saturday with a 2017 Hyundai Elantra SE sedan that sold nearly 71,000 miles for $ 7,597. According to the iSeeCars.com website, the car was sold for $ 1,740 below the market price.
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A search within 1,000 miles of Beverly Hills, California revealed nearly 21,000 cars were available on Saturday.
Fees vary outside the 75 mile radius for free delivery. Delivery between 76 and 200 miles costs $ 300. Within 600 to 800 miles, the cost is $ 1,000, Hertz explains on its website.
Hertz bankruptcy share sale
Hertz Global Holdings Inc. has raised more than $ 24 billion in debt by the end of March, with only $ 1 billion in cash available.
As of mid-March, the company, whose rental car brands also include Dollar and Thrifty, lost all revenue when the trip was stopped due to the corona virus. The company made "significant efforts" but was unable to raise money in the capital markets, so it started missing payments to creditors in April. Hertz was also plagued by management upheavals and appointed its fourth CEO in six years on May 18.
At the end of March, Hertz fired 12,000 workers and put another 4,000 on vacation. It reduced vehicle acquisitions by 90% and stopped all non-essential expenses. The company said the moves would save $ 2.5 billion a year.
On Friday, the bankruptcy court approved Hertz's motion to sell 246.8 million undissolved shares in Jefferies LLC to raise up to $ 1 billion in new equity.
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Contributors: Laura Layden, Naples Daily News; Associated Press
Follow USA TODAY reporter Kelly Tyko on Twitter: @KellyTyko
This article originally appeared in the US TODAY: Hertz Bankruptcy: Used Cars, which were offered for sale under Chapter 11
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