Hertz selling used cars online with help from Amazon....Wave of the future or a future problem?

Fox's Jeff Monosso reports on this new endeavor by Hertz, but could it cause issues for the auto industry?

Episode Transcript

Speaker 1 (00:00):
Eight thirty eight down the Legacy Retirement Group dot com

(00:02):
phone line. Let's welcome in, Jeff Banaso, Fox News Interesting program.
Hurts Rental Cars has launched a nationwide platform for folks
to buy some of their used vehicles.

Speaker 2 (00:12):
Jeff, what's the story, morning, buddy. So this is a
fully online car buying platform and Hurtscarsales dot Com and
allows consumers to browse, to finance to purchase vehicles nationwide.
And so shoppers can do all this through an enhanced
digital platform that builds on Hurtz's recent partnership with Amazon

(00:35):
Autos winnership with Hyundai, and its latest Hurts partnership is
essentially the same thing where Amazon is keeping no inventory,
no inventory of its own. Instead it's providing the software
to execute these sales online to its own website. And
so Hurts is going to offer used vehicles from brands

(00:59):
and include four to Chevrolet and Nissan for now actually
chiefs in there as well. And so consumers for now
who live within seventy five miles of four major cities Dallas, Houston, LA,
and Seattle can start browsing or Hurts Cars on Amazon.

Speaker 1 (01:19):
Interesting. So this isn't are they former like Hurts fleet cars.
Are these just anybody? Okay? So they these were used
as rental cars.

Speaker 2 (01:27):
At some point. Uh huh, what's that?

Speaker 1 (01:30):
Do we know? Like you know, I know, you know,
when you're in a rental car, sometimes you don't take
the best of care of them. I mean, I would
assume they've got some quality assurances and mileages there too.

Speaker 2 (01:42):
I would I would have. I would hope, yeah, I would.
I would think. So, you know, you probably want to
sit in it and and you know, maybe even smell
it before you buy it. But that is but it
certainly is an offering. And and you know, I mean,
Hurts already sells hundreds of thousands of vehicles per year
in addition to running this massive rental car company. But

(02:03):
there are worries in the auto world that that the
Hurts Amazon partnership could cut into a historical source of
profit for car dealerships. It seems to be the wave
of the future. You know, Hurts is one of the
biggest purchasers of vehicles in the US, so they get
them at steep discounts and and and so this will
allow them to capitalize on that. So car dealerships are

(02:25):
a little worried. But look, if I think it easier
for consumers, you know, to be able to get vehicles
and perhapsing a discount of price, I think consumers are
probably all for it. Yeah.

Speaker 1 (02:35):
I would be one of those people that's all for
that too, but again, to make sure sure it's a
it's a good, healthy vehicle and not abused and doesn't
have too many miles on it and who knows what
happened inside that vehicle. But it's interesting though, because you know,
used cars are are hot right now because the price
of new cars are are just insane, I mean used
cars and not cheap either. So are they going to

(02:56):
stay competitive then? Because of the nature of this business,
the auto.

Speaker 2 (03:01):
In the auto world, we've seen that we've seen prices
come down the most unused cars because right now the
focus for consumers is cars, like you know, under ten grants,
cars are two hundred thousand miles because that's what people
going to afford. Uh And so you you know, and
and as far as new cars sales man, there's a
sign that that that you know, auto auto companies might

(03:24):
be in trouble when you've got Ford and others now
teaming up with big banks to to now offer credit
to people who who have really bad credits just to
get them into just to get them, you know, to
prop up sales. It's kind of like the housing bubble
back back in LA. People could afford the houses, yet
they were they were able to get them. Uh and

(03:45):
and so it's going to be really really interesting to
see what happens. Uh. You know, what they should do.
I guess this is my opinion. But what they should do.
They should just be honest and say we're sorry, We're sorry.
We jacked up prices forty percent uh of vehicles industry
wide when you know, during during COVID, and but right

(04:06):
now they can't because you know, they bring prices back down.
What happens to people who's just purchased cars, then they're
even more underwater, kind of in a pickle. But people
are people are not buying new cars as fast anymore.
And you know, as far as new trucks and things
like that, I mean, they're you know, sixty seventy eighty
ninety one hundred thousand dollars for a truck. A lot
of them are sitting on a lot