How Does a Car Rental Service Work?

General Overview

A car rental service provides people with cars temporarily in lieu of them actually purchasing a vehicle, or while their own car is being repaired. Renting a car is much cheaper than purchasing or leasing a car if it is needed for a short amount of time. If a car is to be rented for a month or more, then cost rises significantly and is actually more than purchasing or leasing a car. Rental car services offer different types of cars, including economy cars, luxury cars, cargo vans and pickup trucks.

How It Works

A rental car service operates in a very straightforward fashion. A person seeking to rent a car simply chooses the type of car he would like and for how long he would like to rent it. If the car is available, he then must give his personal information including address and a valid credit card. The renter must be at least 21 years of age to be able to rent a car. Prices vary depending on the type of car rented, but an average daily rate is about $50. The credit card is charged for every day that the car is rented out. For cars that are rented out for a month or more, there are special offers that can lower the ultimate monthly cost. The renter may also choose to buy temporary car insurance from the rental service. At the end of the rental service agreement, the car must be returned to the rental company. Any damage not covered by the insurance must be paid for by the renter.

Other Information

Some car rental services also offer used or certified pre-owned cars for sale through their companies. Many people choose to purchase used cars from car rental companies because the cars come with a certification and history report to let the buyer know that the car is safe for purchase. The car rental service companies also offer protection plans and warranties so that the buyer does not feel taken advantage of during a purchase.