8 Best Car Rental Franchise Opportunities 2024

Looking for some of the best car rental franchise opportunities to bring your dream to life? We got you!

The car rental industry is expected to grow at a CAGR of 7.4% between 2023 and 2032, which makes this a great time to invest in this business.

However, starting a car rental business is not as easy as it sounds. It requires to have a good bank balance and risk-bearing capacity. So if you are not afraid to take the plunge, then keep on reading this guide.

8 Best Car Rental Franchise Opportunities

8 Best Car Rental Franchise Opportunities

1. Rent-A-Wreck

Rent-A-Wreck
Founded1968
Franchising Since1973
Estimated Outlets132
Initial Investment$159,105 – $459,610
Franchise Fees$18,000 – $75,000
LiquidityN/A
Royalty Fees$34/car/mo

Rent-A-Wreck is one of the best-known neighborhood car rental companies. It was founded in 1968 and has been franchising since 1973.

The company has a fleet of economy and luxury sedans, trucks, and vans that customers can rent for an affordable price.

Apart from this, they also offer pickup trucks, min-vans, box trucks, cargo vans, SUVs, 15-passenger vans, and station wagons for rent.

Rent-A-Wreck is seeking franchisees in the U.S. and in international locations, including Sweden, Norway, and Denmark.


2. Nextcar

Nextcar
Founded2003
Franchising Since2015
Estimated Outlets16
Initial Investment$340,000 – $790,230
Franchise Fees$20,000 – $100,000
LiquidityN/A
Royalty Fees$34/car/mo

Nextcar is a fairly new franchise that is owned by the Fitzgerald Group of companies.

Since the company’s inception in 2003, Nextcar has become one of the fastest-growing car rental companies, with a fleet of 3000 vehicles across 16 locations.

The eligible candidates for this franchise will receive need training and support, site selection help, insurance benefits, a POS system, and more.

The initial investment for this franchise is $340,000 – $790,230, and for more details, you can get in touch with the company.


3. Hertz

Hertz
Founded1918
Franchising SinceN/A
Estimated Outlets8,500
Initial InvestmentN/A
Franchise FeesVaries
Liquidity$150,000
Royalty FeesN/A

Hertz is the world’s largest airport car rental company and the number one airport car rental brand in the U.S.

The company has been operating for more than 90 years now and has both company-owned and franchise-owned rental locations all over the world.

Hertz is adding new franchises in the U.S. and Canada for a limited time and is seeking candidates for the same.

The ideal candidate does not necessarily need to have car rental experience but should have an entrepreneurial spirit and business skills.


4. Priceless Car Rental

Priceless Car Rental
Founded1998
Franchising SinceN/A
Estimated OutletsN/A
Initial InvestmentN/A
Franchise Fees$18,000 – $75,000 
Liquidity$50,000
Royalty Fees$43 per car, per month

Priceless Car Rental has been operating since 1998 and has a fleet of more than 2000 cars across the U.S. The company is known for its unparalleled customer service, competitive pricing, and premium fleet.

Priceless Car Rental is seeking qualified business candidates to join their franchise system.

The franchisor will offer company-owned insurance, vehicle financing, ongoing and initial training, access to their business management software, and more to help you get started.


5. Dollar Car Rental

Dollar Car Rental
Founded1965
Franchising SinceN/A
Estimated Outlets640+
Initial Investment$564,300 to $12,538,000
Franchise FeesVaries
Liquidity$150,000
Royalty FeesN/A

Dollar Car Rental is a subsidiary of The Hertz Corporation and a well-recognized brand in the rental car industry. The company was founded in 1965 by Henry J. Caruso and is headquartered in Estero, Florida.

All the cars at Dollar Car are equipped with airbags and child safety seats. They also have on-airport and neighborhood car rental locations across the U.S., which differentiates them from other car rental companies.

Buying a Dollar Car rental franchise could be really great for you because of their unique business model. However, the initial investment for this franchise is quite high.


6. Byrider

Byrider
Founded1979
Franchising Since1979
Estimated Outlets130
Initial Investment$947,000 – $1,577,500
Franchise Fees$60,000
Liquidity$814,750
Royalty Fees$5,500 per month

Byrider is a leading used car dealer franchise that was founded in 1979. By becoming a Byrider franchisee, you will take the role of both the lender and retailer of automobiles.

The company has millions of users and is known for providing the best cars, superior customer service, and company warranty.

Byrider is actively seeking candidates from a wide variety of backgrounds. All you need to qualify is the ability to manage a team and run a successful business.

The initial investment for this franchise is quite high, but according to the company’s website, franchise owners make $1,433,083 in annual net income on average.


7. U-Save Car & Truck Rental

U-Save Car & Truck Rental
Founded1979
Franchising Since1979
Estimated Outlets400
Initial Investment$73,250 – $685,800
Franchise FeesN/A
Liquidity$60,000
Royalty Fees3-6%

U-Save Car & Truck Rental was established in 1979 and started franchising in the same year. The company rents cars, trucks, vans, and light-duty trucks to local businesses, neighborhood customers, and others.

Other than U-Save, it also services government and commercial travelers at selected off-airport locations.

Today, the company has grown to over 400 locations and has a proven business model for franchises.

And the best part about owning this franchise is its low royalty fee as compared to other franchise options. For more details, you can get in touch with the company.


8. Thrifty Car Rental

Thrifty Car Rental
Founded1958
Franchising SinceN/A
Estimated Outlets4000
Initial Investment$564,300 to $12,539,000
Franchise Fees$55,000
Liquidity$150,000
Royalty Fees8%

Thrifty Car Rental is one of the largest car rental companies in the U.S. The company operates over 4000 locations in conjunction with sister company Dollar Car Rental and parent company Hertz.

To own this franchise, the ideal candidate must have a minimum net worth of $500,000 or more, liquid capital of $150,000 or more, and a good credit score.

Upon qualifying, it will take 60-120 days to go through the approval process and complete legal documentation, after which you will be able to open your Thrift Car rental location.


Comparison Of 5 Best Car Rental Franchise Opportunities

CompanyFoundedOutletsFranchise FeeInitial InvestmentRoyalty Fee
Rent-A-Wreck1968132$18,000 – $75,000$159,105 – $459,610$34/car/mo
Nextcar200316$20,000 – $100,000$340,000 – $790,230$34/car/mo
Hertz19188,500Varies$150,000N/A
Priceless Car Rental1998N/A$18,000 – $75,000 N/A$43 per car, per month
Dollar Car Rental1965640+Varies$564,300 to $12,538,000N/A

When Should You Choose A Car Rental Franchise?

Since car rental franchises require a hefty investment, here are some questions that you should ask yourself before buying this franchise:

Do I mind having limited control over my business?

When you buy a franchise, you are required to adhere to the rules and regulations set by the franchisor.

This involves your work timings, advertisement strategy, how to conduct the business, and more.

If you are okay with having limited control, then you can franchise. Otherwise, you are better off starting an independent business.

Do I have the needed investment?

For most car rental franchises, the investment is as high as $1 million, not to mention the net worth requirement and minimum liquid capital requirement.

Since this business is very expensive to start, you must figure out how you will fund it. Once you have figured out the finances, you can then move ahead.


Things You Need To Know Before Choosing A Car Rental Franchise

Before you invest in a car rental company, you must consider these key points first:

Operating costs

There are a lot of costs associated in running a car rental business. This includes maintenance, fuel charges, utilities, staff salary, etc. which leaves you with a profit margin of 5-10% only. So make sure you consider the expenses before you decide to buy a car rental franchise.

Payback period

Owning a car rental company comes at a huge price, & you have to recover this price only after which what you make will be your profits. So make sure you consider the investment and earnings and find out the payback period before investing in any franchise.

Royalty & Marketing fees

For running any franchise, you are supposed to pay royalty and marketing fees to the franchisor that range from 2% to 10%.

The higher this percentage, the less your profit will be. So make sure you choose a car rental company that does not charge a very high royalty & marketing fee.


Wrap Up

Starting a car rental business is not easy. You not only need a good bank balance for this but also have a risk-taking capacity.

If you start this business independently, then you can do so with lesser investment but bear a high risk.

And if you take the route of franchising, the 10 best car rental franchise opportunities that we have listed in this guide are some of the best options that you can possibly find. We hope this guide was useful to you.


FAQ’s

How Much Does A Car Rental Franchise Cost?

The cost of a car rental franchise could vary depending on the brand you choose. However, based on the options mentioned in this guide, you can expect to invest between $73,250 to $12,538,000 to buy a car rental franchise.

How Much Can I Make From A Car Rental Franchise?

The earnings from a car rental franchise business could vary greatly depending on the brand you have invested in, your location, demand, etc. However, on average, a care rental franchise business owner can easily make $150,000 to $200,000 a year.

Is Car Rental Business Profitable?

The biggest question in the mind of someone interested in a car rental business must be: Is car rental business profitable? Yes, car rental businesses are quite profitable. However, for this to happen, your car rental fleet should be booked for 72% of the total time.

Which Is The Cheapest Car Rental Franchise To Own?

As per the options we have listed in this guide, Rent-A-Wreck is the cheapest car rental franchise to own, with an initial investment costing between $159,105 – $459,610, followed by U-Save Car & Truck Rental that has an initial investment range of $73,250 – $685,800.

What Is The Profit Margin In Car Rental Industry?

The profit margin in the car rental industry usually lies between 5% to 10%. A lot of profit margin in this business is eaten away by operating cost, maintenance, fuel, etc.

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