Hertz Has Half A MILLION Vehicles That Could Be Dumped On The Used Car Market

Hertz and its bondholders are looking for ways to shrink the company’s near half-a-million vehicle fleet in what is turning into a tense standoff.

It is understood that the 494,000 used vehicles in Hertz’s fleet are linked to its asset-backed securities and leased to it. Ordinarily, when a company files for bankruptcy, like Hertz has done, it needs to confirm or reject the master lease tied to the debt. In the event of it keeping the lease, it has to continue making payments on the vehicles but if it chooses to ditch the master lease, the collateral is liquidated to pay back bondholders.

MDarringer - 7/3/2020 9:58:08 AM

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If they liquidate, those cars will sell for pennies on the dollar and places like Carmax will feel the impact of that.

CANADIANCOMMENTS - 7/3/2020 6:44:42 PM

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@MD- Just asking... how does one go about ridding themselves of 500k cars?

GeorgeD - 7/3/2020 7:47:10 PM

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easy...auctions.

Section_31_JTK - 7/3/2020 9:59:28 PM

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Hmmmm.....I'm game for a Z51 Vette or a Lotus if the price is right.......

skytop - 7/4/2020 10:50:10 PM

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Oooohh...just want I always wanted. A boring beige 4 door rental vehicle with plastic seat covers and smokey smell to it.