Hertz Global Holdings Inc (NASDAQ: HTZ) is extending gains this morning after announcing the launch of a fully online car-buying platform.
HertzCarSales.com will now enable customers to browse inventory, secure financing, get trade-in offers, and finalise purchases – all without stepping into a dealership.
The strategic pivot toward retail vehicle sales builds on the company’s collaboration with Amazon Autos and expands its Rent2Buy programme.
In a press release this morning, HTZ chief executive Gil West called it “a major step forward in modernizing how we serve our customers.”
Including today’s gains, Hertz stock is trading well over 100% above its year-to-date low in March.
Does that put Hertz stock in direct competition with Carvana?
Yes – Hertz’s new online car-buying platform places it squarely in competition with Carvana Co’s (NYSE: CVNA) core business model.
By enabling end-to-end online transactions, Hertz Global is evolving from a rental firm offloading fleet vehicles into a proper digital retailer.
The ability to secure financing, receive trade-in offers, and schedule vehicle pickup online mirrors CVNA’s value proposition.
With thousands of vehicles available nationwide and a partnership with Amazon Autos, HTZ is clearly targeting the same convenience-driven consumer base.
So, the overlap is undeniable.
According to Deutsche Bank analyst Chris Woronka, “improving resale value is a key part of Hertz turnaround plan,” and retail channels offer higher margins than wholesale auctions.
Why CVNA still has an edge over HTZ shares
While the aforementioned launch does push Hertz closer to Carvana’s turf, the latter retains several competitive advantages.
Its vertically integrated logistics network, proprietary vehicle reconditioning centers, and iconic vending machine delivery model offer a differentiated customer experience.
CVNA’s artificial intelligence (AI) driven pricing engine and expansive inventory also give it scale and personalization that Hertz – still reliant on ex-rental vehicles – can’t match.
Moreover, Carvana’s brand is synonymous with online car buying, while HTZ is still reshaping its identity.
According to Gil West, “this marks a critical milestone in executing our strategy to make retail our primary car selling channel,” – but Carvana has already built its business around that premise.
For now, Carvana stock remains the category leader.
Hertz vs CVNA shares: what’s a better pick in 2025?
From a stock perspective, Carvana offers more upside for growth-oriented investors, while Hertz may appeal to value seekers betting on a turnaround.
CVNA shares have rallied more than 135% in recent months amid improving unit economics and narrowing losses.
HTZ, meanwhile, trades at a lower multiple and is still recovering from post-pandemic fleet challenges.
The new retail push could unlock margin expansion, but execution risk remains.
Carvana stock’s tech-first DNA and brand equity give it a durable moat – while Hertz shares’ legacy infrastructure could be both a strength and a constraint.
All in all, CVNA looks like the better momentum play, but HTZ stock sure is worth watching too.
The post Carvana stock: did Hertz just up the ante? appeared first on Invezz
