Rental car juggernaut Hertz is getting into the car subscription business. The new offering, called Hertz My Car, is being rolled out as a pilot program in Atlanta, Georgia and Austin, Texas, and will cost subscribers between $999 and $1,399 per month depending on which of the two vehicle packages is selected.
Traditional daily rental car companies like Hertz,, and Dollar Thrifty have felt the heat from technological solutions. Ride-sharing services like and have risen to prominence, as well as car-sharing services like . Increasingly, traditional rental companies have explored new business models to combat customer defections and meet evolving consumer demands. Arch rival Enterprise Rent-A-Car itself program back in April.
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Hertz has itself already launched a Multi-Month loan program as a way to appeal to consumers who need cars for longer than a typical daily or weekly rental rate, but shorter than a traditional lease. It has also specifically for those looking for a vehicle to drive with Uber. Hertz My Car appears to be another such effort.
According to the company, Hertz My Car's Tier 1 enrollment ($999 per month plus tax) includes access to full-size sedans, small SUVs and small trucks, meaning subscribers will have access to family four-doors like the , as well as midsize pickups like the and crossovers like the .
Bumping up to Tier 2 status ($1,399 per month plus tax) includes access to all of the aforementioned Tier 1 vehicles, plus "regular SUVs" like the Cadillac CTS. Sadly, the limited-edition Hertz 100th Anniversary Chevy Corvette Z06 coupes will not be part of the program -- they've already exited the fleets and are now for sale through the company's used car arm.and , full-size trucks like the and larger luxury sedans like the
Regardless of which tier is chosen, Hertz My Car comes complete with insurance, roadside assist and all maintenance costs included, along with SiriusXM satellite radio service. Upon approval, a one-time enrollment fee of $250 applies.
In regard to the insurance, Hertz provides a Loss Damage Waiver with a $1,000 deductible. The coverage itself includes up to $100,000 of coverage per person for bodily injury or death; up to $300,000 for each accident and up to $50,000 in property damage.
A Hertz spokesperson told Roadshow that there are six participating locations in Atlanta and five in Austin -- all are off-airport for the moment. Vehicles must be picked up and dropped off at these locations, but the vehicles themselves can be driven anywhere within the US (international travel is prohibited) with unlimited mileage. The spokesperson also noted, "there is no cap on the [program's] number of subscribers. We may refine the program from what we learn in Atlanta and Austin before rolling out to other markets."
While some, more expensive automaker-based subscription services allow for more frequent vehicle swapping as needs dictate (e.g. full-size sedan for workday use, convertible for weekend use, SUVs for family trips), Hertz My Car is limited to just two swaps per month. This could potentially limit the program's appeal, especially as a monthly outlay of $999 to $1,399 a month could easily pay for two vehicle leases in most markets. However, insurance costs vary, and there are other intangibles like the cost and convenience of parking multiple vehicles to consider, as well.