On July 22, 1904, a Minnesota bicycle shop ran an ad in the Minneapolis Journal announcing something quite unusual for that time: cars for rent.
The ad was one of the first references to renting a car, but it was hardly the last. All these years later, the U.S. car rental market is projected to reach $29.2 billion in revenue by the end of 2023, according to Statista.
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And it’s also probably fair to say that cars themselves have changed a bit since Teddy Roosevelt was in the White House.
The shift to electric vehicles has been somewhere north of seismic, given a major boost by the Biden administration's effort to install hundreds of thousands of EV chargers nationally.
Electric vehicles: New experience for many drivers
Naturally, the car-rental industry has taken notice and consumers have the option of bypassing the internal-combustion engine in favor of a battery, thus saving on gas and giving the environment a much-needed break.
But those who've not driven electric vehicles can be flummoxed when they find themselves at the rental-car counter and are confronted with the gas-or-EV choice -- or no choice if gasoline cars are unavailable, as has occurred.
The American Automobile Association has tips for EV renters, starting off with ensuring that drivers know how the vehicles work.
For one thing, acceleration in an EV is smooth and immediate, as opposed to a gasoline-powered vehicle’s gradual approach. EVs are quieter than gas cars. And EV braking is quicker than in gas cars: When you take your foot off an EV accelerator, the car immediately begins to slow.
“Most people are unaccustomed to EVs and all the nuances that they come with,” AAA says.
“Expect the driving experience and, really, everything else to be different from that of a gas car. Knowing that there will be a learning curve going into it will make the whole thing go much smoother overall.”
Hertz: 'A great way to experience an EV'
Electric cars are not difficult to drive but may take some getting used to,” the association says.
"Renting an EV can be a great way to experience an electric vehicle," said Lauren Luster, senior director of external communications at Hertz (HTZ) -), which has gone big into electric vehicles. “EVs offer cutting-edge technology, zero emissions, and lower energy costs."
Luster said Hertz has about 56,000 electric vehicles in its fleet, and the company intends to buy as many as 175,000 EVs from General Motors (GM) -). That purchase from GM will include compact and midsize SUVs, pickups and luxury vehicles, while Hertz also continues to purchase from various manufacturers.
“Some customers may be driving an EV for the first time, so we are focused on providing considerable resources and information to help them feel comfortable as they try this new generation of automotive technology,” she said.
This includes providing information prior to pickup to help customers feel confident driving an EV. Hertz's EV-content hub describes how individual EVs work and offers general “how-to” content.
When you rent from Hertz, the company will also send advance emails that link to the content hub and provide details about how your car will operate and where to charge it.
There’s also a quick-start guide, accessible via a QR code, with information about operating the vehicle, including range and charging stations. Hertz locations also provide brochures with how-to information on EVs.
“Looking ahead, we’ll continue to provide a wide range of rental-car makes and models, including this next generation of automotive technology as well as a range of gas-powered vehicles,” Luster said.
Enterprise: 'EV adoption still in early phases'
Enterprise Rent-a-Car said in a statement that “we’ve learned that EV customer satisfaction is closely tied to the charging experience while on route or at destinations, including where our customers charge, how they charge, when they charge, and the ease of charging.”
The company said that most rentals cover more than 90 miles, requiring customers to access ample charging – most often public fast charging – during their trips.
The public-charging market is complicated and new to many EV drivers, which can result in charging anxiety and become a significant barrier to EV rental, Enterprise said.
“EV adoption is still in its early phases,” the company said “However, EV market share and, importantly, the types of EV vehicles being introduced are increasing quickly.”
The company said it's focused “on the power infrastructure needed to support charging and the long lead times associated with it. Our mobility lines must be able to access the power needed now, and in the future, to operate successfully.”
New Jersey rental firm's different EV tack - None
Rob Ferretti, chief operating officer of Gotham Dream Cars in Teaneck, N.J., said the exotic-car-rental company doesn’t rent EVs, largely because of “range confusion” -- where people fail to understand that such factors as speed and load size can substantially affect a vehicle’s range.
“I don't want to deal with all the people who think, ‘oh, the car says it's got 230 miles; we only have 209 miles to get somewhere.’ And [the car] has a real range of 175 miles, and they're stuck somewhere on the side of the road,” he says.
Gotham Dream Cars rents vehicles from such high-end automotive names as Ferrari (RACE) -), Volkswagen's (VLKAF) -) Lamborghini and Bentley, Aston Martin (AMGDF) -), Rolls Royce (RYCEF) -) and more.
The electric car, Ferretti said, “is more of a utility tool, like renting a golf cart, but it doesn't have that same convenience network that we're used to.”
EV Charging Satisfaction Level Has a Ways to Go
Last year, the U.S. installed about 6,300 fast chargers, about three-fourths of which were Tesla (TSLA) -) Superchargers.
A report from J.D. Power found customer satisfaction with public Level 2 charging is down 16 points to 617 on a 1,000-point scale, the lowest level since the study began in 2021.
Satisfaction with fast chargers declined even further and is down 20 points to 654, USA Today reported.
Brent Gruber, executive director of the EV practice at J.D. Power, warns that low charging-satisfaction scores that continue to fall could hinder EV acceptance rates.
"It's really a cautionary statement – this is not good. And if we keep doing what we’re doing, it’s going to get much worse," Gruber said.
The Biden administration, the EV producers, the rental-car firms, and investors and others with interests in the sector hope to reverse that trend.
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