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Hertz files for U.S. bankruptcy protection

  • Last Updated:
  • May 24th, 2020 11:00 am
11 replies
Deal Addict
Aug 24, 2011
4916 posts
3303 upvotes
Toronto and London
It Hertz to see them go down like this.
Deal Addict
User avatar
Dec 11, 2003
3579 posts
810 upvotes
RiftOfChaos wrote: It Hertz to see them go down like this.
Alright, step outside. It's the Pun Police from r/punpatrol

Wait, wrong forum, nevermind, as you were.
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Heatware 3-0
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Homer Simpson - Marge, don't discourage the boy! Weaseling out of things is what separates us from animals - except for the weasel.
Deal Addict
Nov 12, 2004
2237 posts
907 upvotes
Hometown
A SWING and a MISS... Even if a person could take advantage of these deals from Canada right now. With the current exchange rate the pricing would be at the top of the market here. Compared with a lot of the vehicles I am very aware of current market pricing here in Ontario... Now if the warranty was transferable to Canada and it cost nothing more to import one or two of them could be competitive...

Also I do not have a prejudice against buying former rental vehicles as long the price reflects the "risk", it checks out mechanically and has a bit of factory warranty left. Most people though would NOT even consider one at any price because of "germs" and the mere idea that many other someones were TOUCHING their vehicles knobs and dials before they did for the first time... And that was before Covid-19, cannot imagine how they will react now. LOL

That said bring on the deals from any rental company here direct to consumers... Before the wholesalers grab them all up and fix the price at 1000's above what it should be, with their stupid market price app nonsense.
Deal Expert
User avatar
May 10, 2005
36095 posts
10190 upvotes
Ottawa
Wonder when this is going to happen in Canada.
Lot of companies teetering here on the edge. Lots of little shops and restaurants going down the tubes too. If they did, it can leave lots of customers in a lurch.
Imagine if airlines did this????
The Government cannot give to anybody anything that the Government does not first take from somebody else.
Sr. Member
Oct 15, 2013
792 posts
1266 upvotes
Canuck2fan wrote: Also I do not have a prejudice against buying former rental vehicles as long the price reflects the "risk", it checks out mechanically and has a bit of factory warranty left. Most people though would NOT even consider one at any price because of "germs" and the mere idea that many other someones were TOUCHING their vehicles knobs and dials before they did for the first time... And that was before Covid-19, cannot imagine how they will react now. LOL

That said bring on the deals from any rental company here direct to consumers... Before the wholesalers grab them all up and fix the price at 1000's above what it should be, with their stupid market price app nonsense.
What wholesaler is going to snap all these up when inventories are already high? Where do they store this stock?

If its the case that there is not enough demand from wholesale then going direct to consumer seems more likely, and like you say who wants a car that has been farted in by 500 different people? So, fire sale prices.

I don't see anything but deflation for the car market personally, although the CAD to US rate is definitely a good point.
Deal Addict
Nov 12, 2004
2237 posts
907 upvotes
Hometown
charliegee wrote: What wholesaler is going to snap all these up when inventories are already high? Where do they store this stock?

If its the case that there is not enough demand from wholesale then going direct to consumer seems more likely, and like you say who wants a car that has been farted in by 500 different people? So, fire sale prices.

I don't see anything but deflation for the car market personally, although the CAD to US rate is definitely a good point.
If people with deep pockets smell the opportunity to make money they WILL play the long game... I know lots of folks who have banked their government cheese money and are just waiting to make a slaughtering on the stock market, or so they claim... Wholesalers with cash will also think about using the exchange rate to their advantage and snap up decent deals here to sell them in the US...

So far, I am not seeing any pricing drops of a significant amount in used vehicles at the retail level. I have been constantly monitoring pricing on a few different makes and models, that I plan to buy one of, since the fall of last year.

I make offers and if the vehicle is not already sold (which has happened twice in the last week) I still get the same canned response as last year. Listen our price is determined by our price fixing app er we mean market pricing and it is THE price... Buy it or don't but our apps says we can sell this vehicle all day long at that price. Which is kind of ironic since in some cases it is still sitting there since I saved it to my vehicle search file for the same exact price back in January? Which is why I felt offering 25% less was a good offer. Little did I know how wrong I was. LOL.
Sr. Member
Oct 15, 2013
792 posts
1266 upvotes
Canuck2fan wrote: If people with deep pockets smell the opportunity to make money they WILL play the long game... I know lots of folks who have banked their government cheese money and are just waiting to make a slaughtering on the stock market, or so they claim... Wholesalers with cash will also think about using the exchange rate to their advantage and snap up decent deals here to sell them in the US...
US sales to Cad market might make sense yes, although Canada is tightening up on credit I believe so we'll see.

As for folks stashing, government money doesn't depreciate in value the longer you play the "long game" however long that is; Physical assets like cars you need to pay $ to store. Getting it off the lot quickly seems like a better bet than hoarding for later but sure, I imagine there is money to be made somewhere. It's a bit of a risk given what is going on, so definitely a buyers market.

Cash accrues interest (although utter garbage amounts atm). If other assets are depreciating too, cash appreciates in its bartering power. I'd rather say liquid atm myself.
Banned
May 20, 2020
464 posts
310 upvotes
City of Toronto
The short version of Hertz Global Holdings Inc.’s bankruptcy story goes something like this: global pandemic obliterates the travel business and lands an iconic 102-year-old company in court to seek protection from creditors.

The long version is a fable about what happens when a company relies on accounting and consolidation to keep shareholders happy. It’s a tale of lurching from one CEO to another and management teams failing to stay attuned to consumer tastes.

O.J. Simpson, accounting fraud and Icahn: This is the story of Hertz going bust
Deal Addict
May 16, 2005
2871 posts
263 upvotes
9thGenCivicSi wrote: The short version of Hertz Global Holdings Inc.’s bankruptcy story goes something like this: global pandemic obliterates the travel business and lands an iconic 102-year-old company in court to seek protection from creditors.

The long version is a fable about what happens when a company relies on accounting and consolidation to keep shareholders happy. It’s a tale of lurching from one CEO to another and management teams failing to stay attuned to consumer tastes.

O.J. Simpson, accounting fraud and Icahn: This is the story of Hertz going bust
So true..
Hertz and a lot of companies will claim that Covid19 did them in, but in reality many of these companies were just poorly ran, and was facing problems long before Covid19 appeared. Same thing with JC Penney.
A properly run company will not have 19Billion dollars in debt that they can't service when disaster hits.

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