Hertz officials disclosed that soft demand for pre-owned vehicles forced realized losses on fleet sales throughout May. This downturn is expected to push net depreciation to approximately $300 per unit each month for the current quarter. Compounding the investor anxiety, the company revealed plans for a $100 million stock offering to bolster its position.

While Avis Budget shares retreated on the news, the company’s stock remains up 53% over the last three months. The sharp decline in Hertz shares to $3.49 underscores the volatility currently facing rental operators as they navigate a shifting secondary market for their aging fleets.