Auto Rental & Leasing NAICS 532111, 532112
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Industry Summary
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.
Recent Developments
Nov 22, 2025 - Duration of Average Collision-Related Car Rental Drops
- The average length of car rental for collision repairs decreased to 15.5 days in Q3 2025, down 0.9 days year-over-year, continuing a trend toward shorter durations as supply chains stabilize, according to Enterprise Mobility. Faster parts delivery, especially for OEM and alternative parts, helped reduce repair times, with the median delivery time dropping to 6.8 days from 9.5 days. Shops reported minimal backlogs, with 24% able to schedule repairs immediately, a nine-year high outside the pandemic. Regional differences persisted, with Alaska posting the longest rental periods and North Dakota the shortest. Colorado saw the sharpest improvement, dropping three days. Enterprise Mobility’s data suggests that the industry is nearing pre-pandemic norms, with continued efficiency gains expected to persist into 2026.
- According to a late-October report by the US Travel Association, US travel spending dipped 0.7% in September. It was only the second year-over-year decline in more than four years and came amid increased economic uncertainty and more cautious consumer spending. While domestic air travel increased by 0.5% compared to September 2024, hotel demand decreased by 1.1%. Group hotel bookings have been especially weak, and short-term rentals declined slightly in September.
- Rental car firm Hertz has started selling some of its used vehicles through Amazon’s automotive marketplace, according to The Wall Street Journal. The move is part of the firm’s effort to sell more excess cars directly to consumers to boost profits. Hertz sells most of its cars through auctions and to dealers; consumer sales account for about a third of total vehicle sales. Currently, car shoppers can browse Hertz’s offerings on Amazon, make their purchase, then pick up their cars at locations in Dallas, Houston, Los Angeles, or Seattle. The company aims to add another 45 US pickup locations. In addition to Amazon, Hertz is also ramping up retail sales through its website and other digital outlets, including Carvana and Autotrader.com.
- Some rental car companies are using AI-powered software to inspect cars for possible damage when customers turn in their rentals, according to USA Today. Such tools can detect minute damage to a vehicle's paint or body. Hertz has deployed technology by UVeye and suggests the AI-enabled tool streamlines rental and maintenance processes, ultimately improving customer experiences. However, some industry watchers suggest such tools often trigger additional charges to consumers for damages with no human oversight baked into the process. In some cases, there is no human intervention unless a customer complains.
Industry Revenue
Auto Rental & Leasing
Industry Structure
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).
Industry Forecast
Industry Forecast
Auto Rental & Leasing Industry Growth
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