How To Start A Car Rental Business?

By Hyperlocal Cloud

August 22, 2023

How To Start A Car Rental Business?

Thinking of starting a car rental business? You have arrived at the right spot. A car rental business is effortless, profitable, and has many benefits for business persons. Whether you are an aspiring entrepreneur or own multiple cars, you can easily start a car rental business through the help of expert consultants.

This blog consists of a complete guide to initiating a rental business for cars and some steps to earn high revenue. We have also explained an application that can boost sales, reach an immense customer base and strengthen your business. To know more, let’s get started:

Future Of Car Rental Business

The future of such a business is quite bright and comes with many advantages. Let’s explore the growth with some stats:

  • The economic growth in the car renting business is monitored to reach at $30 billion before the end session of 2023.
  • It is growing at a CAGR of 1.52%, and ARPU (Average Revenue Per User) is expected to reach $0.62K.
  • The market revenue for car rental services is projected to reach $32 billion by the end of 2027.

Hence, these stats prove that investing and starting a car-renting business is safe.

Get A Proper Guide To Start A Car Rental Business From Hyperlocal Cloud

We aid our clients with proper guidance to start a car rental business. Our team of developers is qualified and specializes in developing car rental apps.

How To Start A Car Rental Business?

If you have decided to start a car rental business, then you should follow these steps:

Choose Your Business Niche

Before starting a car rental business, you should start configuring your business type and its niche to opt for. It allows you to start by owning a franchise, creating your brand, buying an existing business, or opting for an app like Turo Clone. You can also start by working with a car dealership company. Here we have brought a few niches that you can consider to start with:


Starting with a franchise will provide you the right to use an existing car-renting company’s business name and model. It can benefit you to start with a successful idea with a high customer base.


It allows you to sign an agreement with a car dealership to provide services to your targeted audience. Although it has a limited user base, you don’t have to adhere to many fleets. As a result, it saves the cost of investing in cars.

Independent Business

This niche allows you to be your own boss. Here, you will be liberal to make a decision that is best for your business, modify strategies and analyze & solve the customer’s queries. It gives you the power to build your brand name from scratch and implement it accordingly.

Existing Business

It is for those entrepreneurs who don’t want to build a car rental business from the ground and don’t want to purchase a franchise. You can look after an existing business whose owner is looking to sell. It is hard to find someone like this, but if you are fortunate enough, you will start a business that stands at half of the way to success.

Target Audience

An ideal customer base can help you operate your business seamlessly and help generate revenue. In this stage, plan and target an audience base you want to serve. Here are a few categories that can be in your target audience’s list:

  • Tourists and visitors
  • Full day renters
  • Short-term renters like business owners and people looking for transportation
  • An auto mechanic and a car dealership can also help

Create A Business Plan

You can create a business plan after determining your customer base and the business niche. It includes car rental business details, layout, service types, charges accordingly hourly/daily, complete investment, marketing plan, and much more. You can also analyze your competitor’s performance, services, and financial projections. By gathering these elements together, you can successfully create a business plan that can be successful in the market.

Get Permits For Your Business

To create a sustainable car rental business, register it with local authorities and the government. Find out the local entity of your state where you will be serving rental services and ask them for clearances. The registration process varies state-to-state, and it also consists of charges. You should also register it with LLCs and corporations to safeguard the business from debts and other liabilities.

Maintain Your Finances In Order

Before starting your car rental business, it is important to configure your finances and maintain their order. Many businesses require the upfront cost to start a business, but in the case of a car rental business, you are likely to have huge startup costs, from buying fleets to creating a store and office for your business. Even if you are developing the business with your own money, you need to have a business account where you can manage funds. You can also look for additional funding from outer sources to help you get started easily.

Right Location

Choose a location where users can easily locate, visit and rent the car service. The other car rental service businesses are running successfully by locating nearly an airport, tourist spots, and out of a city. You should establish your car rental business in an area where the population must be more than 50,000. Thus, you will be successful in creating and operating your business.

Build Your Team

Now as you have everything required to start a business, it's time to hire smart and skilled people to give you customers. The team includes business development executives, customer service executives, front office, and drivers. Also, hire a mechanic who can maintain the quality of your fleets in a timely manner.

Digitize Your Business

An application for your business can help you reach your targeted audience quickly. Hyperlocal Cloud can help you get an app that is very effective for providing support to track sales, monitor business, and generate reports on complete revenue, and it comes with the latest features. It can also help you save time, prevent unnecessary tasks, and reduce labor costs.

Collaborate, Communicate, And Start A Car Rental Business With Us

Hyperlocal Cloud’s development team develops features and functionality of a car rental app that can help you gain an advantage over your competitors.

Key Features of Car Rental Business App

A car rental business app must be equipped with top-tier features. We have categorized the feature into 4 segments: user app, renter app, agency’s app, and admin panel. Let’s explore them all:

Renter App

Our renter app features let car owners and renters own, register and provide services among many users.


It allows renters to sign up with their details like fleet type, name, contact, and location in the app.

Booking Management

Renters can accept & decline an upcoming booking for their fleets.

Real-Time Tracking

Renters can track the vehicle’s status in real-time using a map whenever they give their fleet on rent.

Accept Payments

It allows renters to accept payment in various modes like Google Pay, Amazon Pay, and e-Wallet.

Feedback & Reviews

Renters can view and reply to a user’s feedback in the app. It also helps them improve their car.


Renters can view the user’s journey detail and the location they visited the entire day.

User App

Our car rental business app feature increases accessibility for the user and provides them with a seamless experience.


Users can sign up with their information, like name, contact, location, and photos. They can log in at any time later with a username and password.

Profile Management

it allows users to update their profile, like location and contact number. In case they've shifted to another location.

Rent A Car

Users can rent or book a car by inputting their location, renting duration, fleet type, and additional requests.

Multiple Payment Options

Users can pay in various payment options like Google Pay, Amazon Pay, pay in cash, credit/debit card, and many more.

Chat & Call

It gives users the authority to call & chat with the renter anytime.

Feedback & Review

Users can give star ratings and write about their overall experience. It helps improve business operations and maintain a customer base.

SOS Button

With this feature, users can connect with the nearby emergency centers in case of an accident, medical cause, etc.

Begin Your Car Rental Business Journey Now And Talk To Our Experts

Our team of consultants is fully prepared for our clients with all the required knowledge. They await your call to give you the right direction to succeed in your business.

Admin Panel

Our admin panel feature helps you operate the business effectively. Here are some features that we offer:


An admin’s dashboard helps the admin to analyze the complete workflow and keep an on their car rental business.

User Management

The user management feature lets admins improve, add, replace, and modify an existing user in the app.

Booking Management

Admins can easily change a user's request and swap the fleet’s owner for a customer.

Instant Contact

Admins can connect with any user and car owner whenever they want.

Subscription Management

It allows admins to associate exclusive features to a user based on their payment status.


Now you know the complete process to start a car rental service. Meanwhile, through the above steps, an on-demand app development company can help you attain an app that can automate several tasks in your business. Now you know the complete process to start a car rental service. Meanwhile, through the above steps comes endless opportunities to earn income and expand your business. By taking your business online, you can gain major benefits by attracting new customers and gain high benefits.

FAQ- Frequently Asked Questions

How Much Does It Cost To Build A Car Rental Business App?

A car rental app can cost approximately around $10,000 - $35,000. Note that the reflected amount can rise higher and lower depending on factors like additional features, integrations, paid APIs, and many more.

How Much Time Does It Take To Get A Car Rental Business App?

Getting a full-cycle car rental app can take around 2 - 3 weeks. The development time can rise because of various elements like the app’s complexity, additional feature integration, etc.

Why Choose Hyperlocal Cloud For Car Rental Business App?

At Hyperlocal Cloud, you will meet 150+ professional and skilled development teams who are qualified enough to provide the best app solution. We have 13+ years of experience in developing such solutions and are praised by 1250+ clients worldwide.

Will You Provide Source Code Post-Deployment?

Yes, we provide the source code of the project after deployment.

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