#AutoRentals

Lenders are cutting Hertz a break by affording the company an extended grace period, giving it a chance to cope with its debt. Last we checked on the rental agency, things weren’t going well. With governments cracking down on movement amid the coronavirus pandemic, no one is going anywhere — and the Hertz’s bottom line showcases exactly how bad this has been for business. Hertz had to bring in economic advisors to help the business manage its swiftly mounting debt load as it discussed how to avoid bankruptcy.

Similarly hit by the pandemic, airlines got a multi-billion-dollar bailout. Agencies like Hertz, Avis, and Enterprise, however, have had to seek their aid elsewhere, all the while hoping the U.S. Treasury Department answers their plea. Thus far, it’s been crickets.

Car renters are confronting a harrowing reality. They need to refresh their gigantic fleets in a period where no one can turn a profit, there’s little promise of a swift recovery, and used car values are cratering. Hertz started laying off workers in March as customers evaporated. By the end of April, it also announced it was defaulting on lease payments related to its fleet. With creditors rarely unclear about when they want their money, things were looking grim.

Hertz Global Holdings is reportedly bringing in economic advisors to help the business manage its mounting debt. Unsurprisingly, everyone in the world simultaneously canceling their vacation plans wasn’t great for business. Your author has had to cancel four trips this year, three of which would have included going from an airport to a rental agency. With others forced to do the same as the events and places they planned on enjoying closed up shop, the prognosis is not been good for the borrowed-automobile sector.

When we last checked in, rental agencies had slashed rates to an almost unimaginable degree. Realizing that cheap rentals actually earn you less money when you have a surplus of vehicles nobody wants, those prices have begun creeping back towards normal. But financial problems have not abated. Still, we can put a positive spin on this since you’re probably tired of hearing bad news. Instead of this signaling disaster for rental agencies, think of Hertz bringing in restructuring experts as a sign that it’s being proactive in coping with a truly undesirable situation.

Feel better? Alright, let’s bring you back to reality.

A weekend blaze cut short the lifespans of more than 3,500 vehicles packed tightly into a single massive overflow lot near Southwest Florida International Airport in Fort Myers, Florida.

While the cause of the vehicular firestorm has not yet been determined, the resulting carnage is something to see. Despite dozens of water drops by local sheriff’s office helicopters, the overflow lot, ringed with acres of dry grass, proved the perfect econobox tinderbox.

Having already introduced a subscription service for its vehicles, Porsche decided to continue experimenting with alternatives to traditional car ownership. The luxury brand plans to launch two pilot programs on both U.S. coasts (condolences to America’s Heartland) aimed at encouraging drivers to get behind the wheel of a Porsche for brief periods of time.

The first, overseen by Porsche Cars North America, will test exclusively within the Atlanta area, near Porsche’s North American headquarters. Called Porsche Drive, the pilot program launched a few days ago and offers hourly to weekly rentals of new Porsche cars and SUVs. Meanwhile, a second joint venture with peer-to-peer car rental company Turo will service San Francisco and Los Angeles starting next month. That endeavor focuses on the sharing of already purchased (new and vintage) Porsche vehicles by owners inclined to share them.