How to Start a Car Rental Business in the UK with Just £10,000 (or Less)"
- D'Andre Jones
- Apr 19
- 3 min read
Updated: May 2
Dreaming of running your own car rental business but don't have a huge budget? Good news—you don’t need a fleet of cars or a flashy office to get started. Many successful car rental operators begin with just one well-chosen vehicle and scale up over time. This guide walks you through how to launch a lean car rental business with as little as £10,000, including what tools you actually need, where to save money, and which cars are in highest demand.
1. Start Small and Stay Smart
You don’t need five cars and a city centre office to start renting vehicles. Start lean:
One in-demand car – You can buy used or lease. Think Golf GTI, BMW 1 Series, or an A-Class AMG Line. Sporty but not exotic.
Work from home – Keep overheads low. You can store the vehicle at your home or rent a cheap nearby parking spot.
Handle everything solo at first – Bookings, handovers, cleaning—it’s manageable with just one car.
🧠 Top Tip: Register your business with HMRC as a sole trader (free) and use your personal bank account to begin, until revenue justifies a company setup.
2. What You Actually Need to Get Started
Here’s a breakdown of the bare essentials to launch:
Item | Estimated Cost |
Used car (e.g. 2018 Golf GTI) | £6,000–£8,000 |
Trade/fleet insurance (1 car) | £1,200–£2,000 annually |
Basic rental agreement docs | £50–£100 (template online) |
Booking system / website | £500–£1000 |
Branding (logo, IG page) | Free – £200 |
Total (est) | £8,500–£10,000 |
Where you save:
Skip custom software. Use Google Calendar or the SADJE integrated website calendar for bookings.
Use Canva for branding and social posts.
No office or staff needed early on.
3. Best Cars to Start With (That Actually Get Booked)
Don’t go chasing Lambos. Focus on what rents well and stays affordable to maintain and insure.
Top 5 cars to consider starting with:
VW Golf GTI
BMW 1 Series (M Sport)
Mercedes A-Class AMG Line
Audi A3 S Line
Toyota Corolla (for economy rentals)
These are stylish, reliable, and in demand for short-term weekend rentals or business use.
4. How to Manage Bookings Without Expensive Software
To start, you don’t need to invest in £100/month booking platforms. Here’s how to DIY:
Inbuilt website calendar or Calendly – Let people book time slots online for £20–£30/yr.
Google Forms – Capture rental info, license details, and contact info.
Free rental agreement templates – Available online or from small biz groups. Customize to suit your policy.
💡 Pro Tip: Set up an Instagram page + Linktree with links to your booking form and WhatsApp.
5. Where to Get Your First Rentals
This is where hustle comes in. Early customers will likely come from:
Instagram + TikTok – Post short clips of the car, features, and handovers.
Facebook Marketplace – Post listings with contact info (be upfront about rental nature).
Word of mouth – Offer early discounts to friends or family in exchange for photos/reviews.
Turo – Consider listing the vehicle on Turo to gain exposure while you build your own brand.
6. Keeping It Legal and Safe
Even if you're starting small, stay protected:
ID verification – Always collect photo ID, driving license, and proof of address.
Deposits – Use bank transfer or card payments via Stripe or SumUp. Consider £250–£500 refundable deposit.
Track mileage – Log every trip and keep receipts for expenses to claim against tax.
Final Words:
You don’t need £100k to break into the car rental game. With a solid vehicle, some creative hustle, and a few simple tools, you can launch a profitable side hustle—or full-time business—from as little as £10,000. The key is starting lean and building smart.
Need a booking-ready website or landing page for your rental business? Let’s build one that converts.