Auto Rental & Leasing

The 2,400 Auto rental and leasing companies in the US provide vehicles for short-term or long-term use. Rentals and leases typically involve passenger cars or trucks. Companies may also provide the use of vans, sport utility vehicles, luxury cars, limousines, or hearses. Some companies lease used vehicles. While large rental companies own thousands of individual locations worldwide, they also license brand names to independent operators.

Dependence on the Travel Industry

Air travel is a key driver for car rental volume.

Resale Risk

Companies bear the risk of decreases in residual value for vehicles reaching the end of their rental or lease life.

Sep 23, 2026 - Higher Costs Shrink Rental Operators' Margin for Error

• Auto Rental News says car rental operators have less room for error as vehicle acquisition costs rise, traditional small-car choices shrink, and customer demand changes. Manufacturers are more selective with allocations for in-demand models, fleet incentives have weakened, and one operator reported average capital costs nearly $7,000 higher. Healthy wholesale values are helping offset lifecycle costs, while replacement, insurance, and neighborhood rentals have again become attractive businesses. Higher acquisition costs make idle vehicles more expensive, increasing pressure on operators to match the fleet mix more closely to local demand. Rental firms may benefit from diversifying customer sources and evaluating each vehicle based on expected revenue, utilization, holding period, and eventual resale value.
• Cox Automotive says wholesale used-vehicle prices were 0.4% higher in August than a year earlier on a mix-, mileage-, and seasonally adjusted basis, while the Manheim Used Vehicle Value Index fell 0.9% from July. Rental vehicle prices were 3.4% higher year over year and down 0.3% from July, while non-adjusted rental values were 4.4% above August 2025. Stronger rental-vehicle resale values can support fleet disposal proceeds and help offset elevated acquisition costs for rental and leasing companies. However, month-to-month depreciation and different trends by vehicle age and segment can complicate remarketing decisions. Operators may need to monitor residual values closely when setting holding periods, purchasing vehicles, and choosing which models to cycle out of fleets.
• US gasoline prices continued climbing in September as crude oil remained elevated amid volatility in the Strait of Hormuz. As of September 17, the national average for regular gasoline reached $4.43 per gallon, up 16 cents from the previous week and more than $1 from a year earlier, while crude oil averaged about $100 per barrel, according to AAA. Gasoline prices were approaching the 2026 high of $4.56 set in May. Higher fuel prices can increase the total cost of renting and operating a vehicle for leisure and business travelers, potentially weighing on discretionary road trips. Car rental companies may also see customers place greater emphasis on fuel economy when selecting vehicles, increasing demand for smaller cars, hybrids, EVs, and other efficient models, while complicating fleet planning if fuel prices remain volatile.
• Auto Rental News reports that, according to market research firm Berg Insight, the global public carsharing fleet is expected to grow from about 511,000 vehicles in 2025 to 768,000 by 2030, an 8.5% compound annual increase. Worldwide membership is projected to rise from 91 million to 141.1 million during the same period, while corporate carsharing fleets could expand from 154,000 to 250,000 vehicles. Asia-Pacific is expected to remain the largest market, followed by Europe, where free-floating services now lead in membership and fleet size. Connected vehicles, telematics, booking systems, billing platforms, and analytics support modern operations. Many providers are shifting from rapid expansion toward profitability and higher vehicle usage. The 30 largest operators account for about 63% of members and manage 56% of the global public fleet.

Industry size & Structure

A typical auto rental company employs 50 workers and generates around $17-18 million annually, while a typical auto leasing company operates a single location and generates about $34 million annually.

• The auto rental and leasing industry consists of 2,400 companies that employ 129,500 workers and generate $55.1 billion annually.
• The auto rental and leasing industry is concentrated at the top, and fragmented at the bottom. The top eight car rental firms account for 92% of industry revenue and the top eight auto leasing firms account for 86% of industry revenue. Most small companies operate out of a single location.
• While large rental companies own thousands of individual locations worldwide, they also license brand names to independent operators.
• Large auto rental companies include Enterprise Holdings (Alamo, Enterprise, National), Hertz, and Avis. Major companies that provide auto leasing services include Element Fleet Management, and Holman (formerly ARI Global Fleet Management).