Hertz Expands Used Car Sales on Amazon: Is HTZ Stock a Buy, Sell, or Hold?

Hertz has partnered with Amazon to sell used cars, potentially disrupting the traditional car dealership and online-only seller markets. The car rental market is expected to grow 5% annually through 2030. Hertz's shares rose 5% after the announcement, but the company's valuation remains complicated with a market capitalization of $1.7 billion and negative earnings per share. Investors consider HTZ stock a buy, hold, or sell based on strategic changes and industry expectations.

Hertz Global Holdings Inc. (HTZ) has recently partnered with Amazon Autos to sell used cars online, marking a significant move into the digital retail space. This collaboration, which went live on Wednesday, allows customers to browse, finance, and purchase pre-owned vehicles directly through Amazon's platform. Initially available in select cities such as Dallas, Houston, Los Angeles, and Seattle, the service is set to expand to 45 cities across the United States by the end of the year, with plans to go nationwide in the future [1].

The partnership aims to enhance Hertz's revenue streams by tapping into Amazon's vast customer base. Hertz becomes Amazon Autos' first fleet dealer, listing vehicles from well-known brands such as Ford, Toyota, Chevrolet, and Nissan. This move is part of Hertz's broader strategy to innovate and expand its market reach, leveraging technology to provide a more seamless customer experience [2].

The car rental market is expected to grow at an annual rate of 5% through 2030, presenting a robust opportunity for Hertz to diversify its revenue streams. However, Hertz's stock valuation remains complicated, with a market capitalization of $1.7 billion and negative earnings per share. Despite this, investors consider HTZ stock a buy, hold, or sell based on strategic changes and industry expectations [3].

Carvana, a prominent online-only used car seller, may face increased competition from this partnership. Carvana's investment premise relies on its digital-first platform and advanced logistics, but the introduction of Amazon's extensive customer base and streamlined platform could disrupt its market share and vehicle sourcing [4].

Hertz's shares rose 5% after the announcement, reflecting investor optimism about the partnership's potential to drive growth. However, the company's long-term growth assumptions may need to be reassessed in light of this new competition. Investors should closely monitor the impact of this partnership on Hertz's financial performance and market position.

References:
[1] https://hertznewsroom.gcs-web.com/news-releases/news-release-details/hertz-car-sales-launches-amazon-autos
[2] https://invezz.com/news/2025/08/20/hertz-and-amazon-partner-on-used-car-sales-expansion-to-45-us-cities-planned/
[3] Simply Wall St
[4] Simply Wall St