Car rental company Hertz must sell 200,000 cars as part of a new deal the company has made. After Hertz filed for chapter 11 bankruptcy in May due to roughly 19 billion dollars in debt, it has taken drastic cost-cutting measures. These measures include a hiring freeze and renegotiating deals with major suppliers—many why are wondering why Hertz competitors aren’t in a similar position. The company has had terrible luck all year and has had more hurdles than just the coronavirus to overcome.
Hertz uses a method called DIP financing, otherwise known as debtor in possession. They made special mention of their first-lien lenders, many of which will provide part of the new funding. The company has said one billion dollars will be used to provide equity when purchasing new vehicles for their fleet. There will be a court hearing on the latest round of funding on October 29th. Hertz argues that this latest funding round is critical for its business model, which requires buying new fleet vehicles yearly.
If you’re in the market for a used car, we recommend looking to Hertz first at the moment. They offer many competitive incentives, including; one year of roadside assistance with unlimited miles. Travel Breakdown Assistance, towing coverage, and rental car coverage are all standard. Just visit https://bit.ly/3q4bfIQ for more details. The company also has a Rent2Buy program that allows customers to rent one of their used rental vehicles for a three day test period at a low rate. This allows you to visit a trusted mechanic and do a few errands before purchasing the vehicle. You can also visit a Hertz car sales retail store. There are currently 75 locations in North America, with Hertz among the top used car dealers in the nation. We have options for loans on our website https://automobeel.com/loans-and-credit/; we specialize in low credit rating loans.