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ESTERO, Fla. - Hertz Car Sales (HTZ), currently showing signs of being undervalued according to InvestingPro analysis, announced Thursday the nationwide expansion of its Rent2Buy program to more than 100 cities, allowing customers to test drive vehicles for up to three days before deciding to purchase. The program now includes 2025 models in its inventory of used vehicles.
The extended test drive program charges customers a daily rental rate that is waived if they choose to buy the vehicle. According to the company, which generated $8.6 billion in revenue over the last twelve months, 80% of customers who use the Rent2Buy service ultimately purchase the car they test.
"Buying a car is one of life’s biggest decisions, and we believe customers deserve more than a spin around the block to make it," said Jeff Adams, Executive Vice President of Hertz Car Sales, in a press release statement.
The program offers vehicles from Hertz’s active rental fleet, which the company says are typically newer with lower mileage and often priced below Kelley Blue Book Suggested Retail Value. Customers can browse and reserve vehicles online, take a complimentary two-hour test drive, or rent for the full three-day period. (InvestingPro subscribers have access to detailed analysis and 10+ additional insights about Hertz’s financial performance and market position.)
Purchased vehicles come with a 12-month/12,000-mile limited powertrain warranty, 24-hour roadside assistance, and a 7-day/250-mile buy-back guarantee, subject to terms and conditions.
The expansion comes as consumers increasingly adopt "try before you buy" approaches across various retail categories. The program aims to reduce the pressure associated with traditional car shopping by giving customers more time to evaluate vehicles in real-world conditions.
In other recent news, Hertz Global reported its second-quarter 2025 earnings, revealing an earnings per share (EPS) of -$0.34, which exceeded the forecast of -$0.40. The company also reported revenue of $2.18 billion, slightly surpassing the expected $2.17 billion. Hertz management highlighted improvements in its net daily profit per unit (DPU), with gross DPU rising to $280 and expectations to reach approximately $300 in each quarter of the second half of the year. Jefferies maintained a Hold rating on Hertz, noting progress toward the company’s $1 billion EBITDA goal. Susquehanna raised its price target for Hertz to $6.00, citing solid progress in DPU metrics despite challenges in pricing and revenue per day. Meanwhile, Goldman Sachs reiterated its Sell rating with a $3.00 price target, stating that the longer-term outlook remains largely unchanged despite a slight beat on EBITDA. These developments indicate a mix of perspectives from various analyst firms regarding Hertz’s current and future performance.
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