The new partnership between Hertz $HTZ ( ▲ 0.78% ) and Amazon $AMZN ( ▲ 2.56% ) Autos is raising some concerns in dealer circles, with the potential to add to the challenges they already face in the used car market.
The details: In an open letter to the National Automobile Dealers Association published on WardsAuto, John Possumato, a former Chrysler Plymouth dealer, laid out some of the threats posed by the Hertz-Amazon partnership, including:
Rental companies like Hertz can buy vehicles in bulk, qualifying them for discounts that traditional dealers can’t access (this has been true for a while).
That advantage allows Hertz, which operates 45 retail lots across the U.S., to sell cars at lower prices than dealers can match.
But pairing that with Amazon’s dominance in e-commerce and digital sales gives Hertz much more exposure.
“You have Amazon, the biggest merchandizer retailer in the country, and you’ve got the biggest or one of the biggest rental fleets, and they’re pairing together to sell these cars,” wrote Possumato.
John Possumato
Why it matters: Hertz's fleet discounts mean it can undercut dealer pricing on comparable inventory, creating direct competition in local markets where dealers rely on used car gross profit. With Amazon's platform likely amplifying Hertz's reach, dealers face a competitor with both lower acquisition costs and greater distribution scale.
Worth noting: Hertz also announced recently, that customers can now do the entire car buying process online at HertzCarSales.com as the company looks to grow its retailing channels even further.
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Between the lines: Possumato’s warning comes at a time when dealers are already navigating turbulence in the used vehicle market, from tighter supply to falling residual values.
At the start of September, dealerships carried a 43-day supply of used vehicles—the lowest for the period in three years.
Supply of used cars priced under $15,000 remains extremely limited, with only 29 days’ worth available.
Vehicles originally priced between $50K–$60K now retain just 66% of their value, down from 74% in 2022.
Bottom line: If the model proves viable for Hertz, expect rapid adoption by Enterprise, Avis, and potentially other fleet operators.
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