Originally written May 24th, 2022:
Avis and Hertz are worth $54k and $45k per car, respectively, up ~2x from early 2019. Is this too much? Maybe. According to CNBC, the average price of a used car in the United States topped out at around $42k in early January 2022.
It’s worth noting that both Avis and Hertz operate globally (in more than 150 countries each). Used car prices are certain to vary across countries and may differ significantly from prices in the U.S.
In this analysis, we show the value of AvisBudget and Hertz on an enterprise-value-per-vehicle basis. This metric has ripped higher as both companies have downsized their fleets and been well-positioned for a post-pandemic recovery in travel and demand for rental cars.
Let us know what you think about the market for rental cars and used vehicles in the comments. Follow us on Instagram for more on this topic in the future.