Hertz files for bankruptcy


Mook

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DEEZUZ

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How does this even happen. I don't understand business at all.. How can big companies be so in debt...?


The answer is probably obvious but I just don't understand
 
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Mook

Mook

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well currently, no one is traveling and they have something like 700,000 cars just sitting. that probably doesnt help.
 

nytebyte

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I figured people would be avoiding planes right now and WANT to drive if possible.
The Enterprise car rental near me is always out of cars, although I haven't checked since this pandemic started.
 

GTPpower

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It is baffling to me that this company could be in debt. They make a dollar for every dollar they spend on a car.
 

SpeedSpeak2me

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Too much negative cash flow from the cars just sitting and not being rented. They have a lot of leases that need to be paid and don’t have the cash reserves to cover it.
 

Mr_Roboto

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I thought we had a thread on here about how the rental industry was gonna go to shit? Maybe I saw it in an article?

Not especially surprised. Curious to see what happens to the used car industry in return. I can tell you at the start of the pandemic my XC90 V8 was an offer of 800 at the JY and I went today and it was 390. Scrap's at like 85 a ton right now. Could trigger the whole market's collapse tbh.
 

sickmint79

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unf. hopefully the $40 i just spent on a fake rental to maintain my 16k hertz points wasn't all just in vain and a total loss...
 

Pewter-Camaro

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They Have been struggling for a while with Lyft and Uber taking away a chunk of their business. Now they have a massive fleet of vehicles that have not been making money on for months and can’t make the payments on.
 

sickmint79

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They Have been struggling for a while with Lyft and Uber taking away a chunk of their business. Now they have a massive fleet of vehicles that have not been making money on for months and can’t make the payments on.
i don't travel much for work anymore, but did need to keep my points alive with a fake rental since i had not made one for a year. i have just used a taxi or uber on all of my most recent trips, although sometimes it is a pain to use a mobile service at some airports cuz they put the pickup location out in some goofy spot.
 

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