Passenger Car Rental Revenue Benchmarks
The average passenger car rental business in the United States generates $5.6M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 2,020 passenger car rental businesses in the U.S., employing 62,218 workers with an average profit margin of 20.0%. The average employee in this industry earns $54K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Passenger Car Rental Business Actually Do?
Rental car companies — Hertz, Enterprise, Avis Budget Group — renting cars daily/weekly at airports and neighborhoods.
Who buys: Business travelers, leisure travelers, replacement customers (insurance-paid).
Average Revenue
$5.6M
per year
Profit Margin
20.0%
industry average
Revenue / Employee
$182K
per year
Total Businesses
2,020
in the US
Est. Owner Income
$1.1M
small business avg
Labor Cost
25.0%
of revenue
Avg Employee Wage
$54K
per year (BLS)
Market Saturation
0.6
firms per 100K people
How Much Do Passenger Car Rental Charge?
Rental car companies (Hertz, Enterprise, Avis) price per day with brand and vehicle class as drivers.
| Service | Typical range |
|---|---|
Economy car (daily) | $35–75/day |
Mid-size (daily) | $50–100/day |
Luxury/SUV (daily) | $85–250/day |
Weekly rate | 5–6x daily rate |
Insurance add-on | $15–35/day |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete passenger car rental business plan
A 12-section data-backed business plan for a passenger car rental business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the passenger car rental industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Property expenses | $8 | $464K | Maintenance, repairs, property taxes, HOA fees, utilities on managed properties. |
Wages & benefits | $25 | $1.4M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $3 | $155K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $8 | $464K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $36 | $2.0M | Insurance, legal, financing costs, agent commissions to sub-agents. |
Net profit | $20 | $1.1M | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
6.04%
openings/year
Closure Rate
5.05%
closings/year
Net Job Growth
+5.51%
annual
Businesses Closed
444
in 2023
Firm Count Trend
Should You Start a Passenger Car Rental Business?
Startup Cost
$50K – $250K
Break-Even
2 months
5-Year Survival Rate
50.0%
Related Industries
Frequently Asked Questions
- What does a passenger car rental business do?
- Rental car companies — Hertz, Enterprise, Avis Budget Group — renting cars daily/weekly at airports and neighborhoods. Business travelers, leisure travelers, replacement customers (insurance-paid).
- How much do passenger car rental charge?
- Rental car companies (Hertz, Enterprise, Avis) price per day with brand and vehicle class as drivers. See the pricing table above for typical rates by service type.
- How much does the average passenger car rental make per year?
- The average passenger car rental business generates $5.6M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $1.1M per year at a 20.0% profit margin.
- How many passenger car rental businesses are there in the US?
- There are 2,020 passenger car rental businesses operating in the United States, employing a total of 62,218 workers.
- How much does it cost to start a passenger car rental business?
- Startup costs for a passenger car rental business typically range from $50K to $250K, with a 5-year survival rate of 50.0%.
- What is the average salary in the passenger car rental industry?
- The average employee in the passenger car rental industry earns $54K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The passenger car rental industry is actively growing — adding jobs at a net rate of 5.5% per year. New establishments are opening faster than existing ones close (6.0% entry vs 5.0% exit), indicating healthy demand.
Approximately 77% of passenger car rental businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 444 firms in this industry closed permanently.
Employment & Wages
The average employee in the passenger car rental industry earns $53,739/year. This is near the national average of ~$65K. With 9,640 establishments employing 108,465 people, the typical business has about 11 employees.
Industry Trend (2000–2023)
The passenger car rental industry has declined 17% since 2000 (from 4,457 to 3,716 firms).
See full historical statistics →Compare Passenger Car Rental revenue with other industries: