How Much Does It Cost to Develop a Car Rental App in 2025 ?

Imagine standing in a crowded train station while on holiday and finding out your train has been canceled, just like all the others today. Frustrating, right? What's your next move? Scramble for a bus? Search for another train? Or, what if you rent a car? A quick app download, a few taps to compare available options and payment processing, and you go straight to your collection point using GPS. Car rental saves your day and plans.

Beyond travel mishaps, car rentals are perfect for business trips, temporary replacements, or simply exploring new destinations.  As more and more people turn to these services for easy transportation and convenience, the demand to rent car apps has also increased. They simplify the process by replacing traditional models with user-friendly platforms offering easy booking, quick vehicle selection, comparison, and seamless payments. 

With the global car rental market projected by Statista to hit $104.4 billion in revenue by 2024, investing in a car rental app could be a highly profitable venture. If you're considering building a car rental app like Herz or like Turo, the first question you might be wondering is, how much will it cost?  Let's break down the types of car rental apps and the factors that influence these costs and provide a clear estimate.

What are Car Rental Apps?

Car rental app provides services to people who require a vehicle for temporary purposes. These people can be travelers from other cities or towns, those who do not own their car, and people whose car is at service and who want a temporary car to fulfill their purpose. 

Here are the main types of car rental apps.

Traditional Car Rental Apps: represent digital extensions of car rental companies, offering various vehicle types. They allow users to book vehicles from a company-owned fleet by picking up and returning a car at a specific location.

Examples: Hertz, Europcar, Avis.

Car Sharing Apps: offer vehicles for short-term use, sometimes by the hour or minute rather than by the day or longer. These platforms target users who need a car for brief periods or on-demand access rather than committing to a long-term rental and offer more flexible pick-up and drop-off options.

Examples: Zipcar, GIG Car Share

Peer-to-Peer (P2P) Car Rental Apps: connect individual car owners with renters. Vehicle owners list their cars, and users can rent them directly, often cheaper than traditional rentals. Such rentals are usually also flexible with pick-up and drop-off locations. 

Examples: Turo, Getaround, Zoomcar.

Subscription-Based Car Rental Apps: allow users to subscribe to a car for a fixed monthly fee, including maintenance and insurance, offering flexibility without a long-term commitment. Users can make car swaps. Ideal for long-term but non-permanent car needs.

Examples: Invygo, Subscribe me.

Travel or Ride-Sharing apps with Rental Options: integrate car rentals into travel or ride-sharing platforms, allowing users to rent cars alongside hailing rides or other bookings.

Examples: Uber Rent, Lyft Rentals, Skyscanner, and even Booking.

Luxury and Exotic Car Rental Apps: cater to users looking to rent high-end or exotic vehicles for special occasions, parties, weddings, etc.

Examples: Premier Auto Rental, Loue1voiture.

Which factors impact the cost of rental car app development? 

There are several important factors that influence the cost of developing an app, and we have already discussed them in previous blog posts about building apps in different industries. These factors are equally applicable to car rental apps, i.e., the cost will greatly depend on the type and complexity of the app, its design, your choice between native or cross-platform development, and your development team and its location. Let's discuss these factors in detail:

App Type and Functionality: 

First and foremost, your app's type and functionality will define the cost you will have to spend on developing it. Different app types may require a bit different features and functionalities. For instance, traditional car rental apps primarily serve renters but often need integration with systems like CRMs for managing customer data and bookings. On the contrary, P2P car rental apps usually don't require such integrations but must include features to support both renters and car owners. Besides, each advanced feature adds not only convenience to users, but also complexity to the development process, influencing the overall cost. 

The location of the development team and method of development: 

Another significant factor affecting the app development cost is how you will develop the app and who will do it. If you have a limited budget, you can consider using no-code app builders or hiring freelancers. The cost of developing an app in such a case will be associated with using app builders and the costs offered by freelancers if you opt to attract their help. No-code tools offer a quick and affordable solution for startups or small businesses. Still, they often come with limited customization and features and may offer a less polished user experience, revealing that the app is builder-made. 

Hiring professional developers is a much better option if you aim to build a more robust and feature-rich app. You can either build an in-house team, which provides better communication and control but incurs higher costs due to salaries and administrative expenses, or outsource development to a dedicated team. Outsourcing development means you only pay for the work done. You don't have to deal with hiring, interviewing, or last-minute changes. However, costs can vary depending on where the talent is located. 

Developers in North America or Western Europe typically charge higher rates than developers in Eastern Europe, India, or other regions with lower labor costs. Outsourcing can significantly lower costs, but it's essential to consider communication and cultural differences. For more details, check our blog post on why outsourcing is an excellent option and the blog post about the best countries to hire from.

Here are the rough hourly charges to compare software development costs across different regions in 2025:

• North America (USA, Canada): $75-$125 per hour

• Western Europe (Poland): $45-$100 per hour

• Eastern Europe (Ukraine): $25-$55 per hour

• Asia (India, China): $20-$60 per hour

• Latin America (Argentina, Brazil): $20-$60 per hour. 

Development platform type (iOS, Android, or Both): 

Car rental apps primarily target mobile users, so these apps are usually built for iOS, Android, or both. Android has a larger user base, but developing for it can be more time-consuming and costly due to the need for testing on various devices. If budget is a concern, starting with a single platform (iOS or Android) can save money but will limit your reach. On the other hand, building for both platforms increases your audience but requires extra work in design, development, and testing. Tools like Flutter or React Native, designed for cross-platform development, help cover both iOS and Android without doubling costs.

App Design:

App design can make or break an app's overall success, making it another main factor determining the app costs. A simple design may be less expensive, while a custom, high-quality UI/UX design with smooth animations, responsive layouts, and intuitive interfaces will be pricier. Features like augmented reality and interactive elements can make your app stand out but also increase the price. 

App Maintenance and Marketing:

On top of this, once again, we have to stress that, just like with any other app, developing a car rental app is just the beginning of a long journey.  When your app has been developed, it needs regular updates, bug fixes, and improvements. You shouldn't forget about marketing expenses either. Annual maintenance costs are typically 15-20% of the initial development cost.

So, how much will it cost to build a car rental app?

The cost of creating a custom car rental app ranges between $20,000 for basic apps to $180,000 and more for apps with advanced functionalities.

Based on the app's complexity, here are some rough estimates:

• Basic car rental apps with essential features like user authentication, vehicle listings, search, booking, and payment can cost from $20,000 to $50,000.

• Medium complexity apps with features like detailed vehicle information and images, reviews, push notifications, in-app chat support, and multiple languages support will increase the development cost to around $50,000-$100,000.

• Advanced car rental apps with advanced functionality such as real-time car tracking, complex integrations, and AI recommendations, expect to range from $100,000 to $170,000 or more.

So, how much will it cost to build a car rental app?

Creating a custom car rental app ranges between $20,000 for basic apps to $180,000 and more for apps with advanced functionalities.

Based on the app's complexity, here are some rough estimates:

• Basic car rental apps with essential features like user authentication, vehicle listings, search, booking, and payment can cost from $20,000 to $50,000.

• Medium complexity apps with features like detailed vehicle information and images, reviews, push notifications, in-app chat support, and multiple languages support will increase the development cost to around $50,000-$100,000.

• Advanced car rental apps with advanced functionality, such as real-time car tracking, complex integrations, and AI recommendations, are expected to range from $100,000 to $170,000 or more.

Based on the app's type, the expected costs are the following:

• Traditional Car Rental Apps - $20,000 - $100,000.

• Car Sharing Apps -  $50,000 - $120,000.

• Peer-to-Peer (P2P)  - $70,000 - $140,000.

• Car Rental Apps Subscription-Based - $60,000 - $130,000.

• Car Rental Apps Travel or Ride-Sharing apps with Rental Options  - $90,000 - $200,000.

• Luxury and Exotic Car Rental - $90,000 - $180,000.

Here's an approximate cost breakdown based on functionality:

• User profile and account management for user registration, updates, payment methods, rental history -  $1,000 - $3,000.

• Car listings and search functionality to browse and filter cars by location, price, model, and type - $3,000 - $5,000.

• Vehicles detailed information with features, images, or videos - $2,000 - $5,000.

• Booking and reservation system to book cars based on availability and rental dates - $7,000 - $12,000.

• Booking modifications to edit or cancel reservations - $3,000 - $10,000.

• Payment gateways to secure payment options like credit/debit cards and integration with services like PayPal or other payment methods - $2,500 - $4,000.

• Geolocation and map integration to locate nearby cars and rental points for pick-ups and drop-offs - $2,500 - $6,000.

• Multiple language and currency support for international users - $3,000 - $8,000. 

• Customer support for FAQs, rental policies, and contact options - $1,000 - $3,000. 

Additional Functionality:

• Admin Dashboard for car owners or companies to manage vehicles, track rentals, and access analytics -  $10,000 - $30,000. 

• Real-time vehicle availability and GPS tracking - $5,000 - $10,000. 

• In-app support for live chat or messaging for assistance with bookings, troubleshooting, or inquiries - $5,000 - $10,000.

• Car inspection to report any damages- $3,000 - $6,000.

• Rental Agreement and insurance to review, buy, and sign directly in the app - $3,000 - $7,000.

• Push notifications and alerts for bookings, reminders, payments, and promotions - $1,500 - $3,000.

• Driver verification and background checks to verify driver's credentials and renal eligibility - $10,000 - $15,000.

• Remote Vehicle Access to unlock cars with digital keys - $10,000 - $20,000. 

• Ratings and reviews so users provide feedback on cars and services- $1,500 - $4,000. 

• Loyalty programs and discounts to offer rewards for repeat customers - $5,000 - $10,000. 

• AI recommendations based on user's preferences, search history, and previous rentals- $20,000 - $50,000

• Subscription plans for car owners for premium benefits like priority booking requests, premium listings, or discounts for insurance - $3,000 - $8,000.

Conclusion

The cost of developing a car rental app can range from $20,000 to $150,000 or more, depending on factors like app complexity, features, platform choice, and the location of your development team. A very basic app may cost around $20,000, while a more complex, feature-rich one could exceed $150,000. So, building a car rental app can be a big investment, and it may be reasonable to start with a Minimum Viable Product (MVP). It should focus on core features like user profiles, car listings, booking, and payments. Based on user feedback after launch, you can add additional, more advanced features. You can save costs by choosing cross-platform development and outsourcing to a reliable app development team instead of building an in-house team.