Tarun Nagar 
In this dynamic world of continuous progress, car rental applications are increasing day by day due to higher market demand and driving global success rates. Have you ever heard the name of a car rental app like Zoomcar? If yes. Then, you already know the success and demand of the app. But the budget car rental app is necessary in this competitive market to create their own kingdom. It offers a wide variety of cars in budget-friendly and even short-trip car rental at a lower cost.
According to a global study, the car rental application market is valid around $108.20 billion in 2025, and it is projected to grow to around $124.12 billion by the end of 2029.
Observing the above data depicts that investing in a car rental app development is the most profit-generating opportunity for businesses.
Welcome to this dynamic blog, we explore how to build a budget car rental app, overall development cost, features, benefits, and money-making techniques.
What is a Budget Car Rental App?
A budget car Rental App is a mobile application that enables users to effortlessly rent automobiles at reasonable rates. It provides a diverse range of vehicles, from economical models to larger cars, with clear pricing and rental terms. Users may explore available cars, compare pricing, book rentals, and manage reservations all within the app. If you build a car rental app like Virtuos, it provides affordable, hassle-free car rental services for both short- and long-term demands.
- Real-Time Availability
- Price Comparison
- Location-Based Services
- Booking and Reservation
Market Analysis of Budget Car Rental Applications
- As per the global market, the user penetration rate is estimated to be 3% in 2025, increasing to 10.1% by 2029.
- In a recent study, the average revenue per user (ARPU) is estimated to be US$167.45.
- According to the global comparison, the United States is likely to create the largest income in this industry, with a projected revenue of US$33 billion by 2025.
- As per the reports, a compound annual growth rate of 49% is predicted between 2025 and 2029.
- According to a ground-level study, by 2029, the car rental applications market is expected to have 31 million users.
10 Successful Budget Car Rental Applications
These are just a few examples of budget car rental apps in the market. Here is a table of 10 successful budget car rental applications, including download numbers, ratings, launch year, and platform availability.
| Applications | Download Users | Stores Ratings | Apps Launched On | Platform Accessibility |
| Hertz | 10M+ | 4.3 | 2005 | Android/iOS |
| Avis | 10M+ | 4.2 | 2008 | Android/iOS |
| Budget Car Rental | 1M+ | 4.0 | 2003 | Android/iOS |
| Turo | 10M+ | 4.7 | 2010 | Android, iOS, Web |
| Getaround | 1M+ | 4.5 | 2009 | Android, iOS, Web |
| Expedia | 100M+
|
4.5 | 1996 | Android, iOS, Web |
| Nextdoor | 10M+
|
4.7 | 2011 | Android/iOS |
| Enterprise Rent-A-Car | 10M+
|
4.4 | 2007 | Android, iOS, Web |
| Zipcar | 5M+ | 4.6 | 2000 | Android/iOS |
| Sixt | 5M+ | 4.5 | 2012 | Android, iOS, Web |
Why do Businesses Invest in Budget Car Rental App Development?
Businesses invest in budget car rental app development to provide enhanced convenience, reduce operational costs, reach more customers, and improve service offerings, all of which lead to greater competitiveness in the market. Here are five key reasons:
- Increased demand for Affordable Travel Solutions
- Improved Customer Convenience
- Operational Efficiency and Cost Reduction
- Improved Market Reach and Scalability
- Data-Driven Decision-Making
1. Increased demand for Affordable Travel Solutions
Businesses are developing budget automobile rental apps to meet the growing demand for low-cost travel options. With the development of budget-conscious consumers, particularly millennials and travelers looking for low-cost alternatives to taxis or ride-sharing services, businesses know that providing economical car rentals via an app appeals to a broad market segment.
2. Improved Customer Convenience
Mobile app development gives users with an easy, on-the-go way to rent cars, manage reservations, and pay. A user-friendly interface with real-time availability, easy booking, and flexible rental options greatly enhances the client experience. Businesses can improve convenience by providing options such as GPS-enabled location searches and rapid booking confirmations, making customers more likely to return.
3. Operational Efficiency and Cost Reduction
A low-cost automobile rental app optimizes the operating procedures of a rental company, lowering overhead expenses associated with manual bookings, inventory management, and vehicle monitoring. Automated booking systems, real-time car availability, and payment linkages all help to reduce administrative work, freeing up personnel for other vital operations.
4. Improved Market Reach and Scalability
A mobile app allows businesses to access a larger audience and grow their market presence beyond local geographical boundaries. As individuals increasingly rely on mobile devices for travel-related services, businesses can attract customers from other regions or nations. As we discussed earlier with the Android app development company, well-designed software may also readily scale to meet increasing demand by supporting a broader selection of vehicles and locations.
5. Data-Driven Decision-Making
Investing in app development enables firms to gather vital information about client behavior, preferences, and usage patterns. This data can be used to improve fleet management, provide better customer service, and offer targeted promotions or discounts. Businesses may use this data to fine-tune their services and make more educated decisions, resulting in improved customer retention, satisfaction, and long-term profitability.
7 Essential Steps to Build a Budget Car Rental App
Most businesses and developers are waiting for this section on how to create a car rental app. Finally, the wait is over. We start from the initial stage of development to post-launch services to clear all the doubts and confusion. So, let’s take a look at the affordable car rental mobile app development process:
- Project Requirement and Analysis
- Core and Advanced Features
- Best Tech Stacks
- Design UI/UX
- App Development
- Testing and QA
- Launching and Maintenance
1. Project Requirement and Analysis
Start the first step of development, identify the exact requirements and needs of your project, and make a proper list of requirements to reduce misunderstanding and confusion. After analysis of the market demands, what types of apps are more trending and successful in the market? Hire dedicated developers to prepare a future-proof plan for competitors on how you can compete with them.
| What are your app’s basic or core requirements? |
| Clear your app’s future goals. |
| Which cost-effective car hire apps are more successful and trending in this competitive market? |
2. Core and Advanced Features
After the identification of requirements, detect the core and advanced features for your project. Create an organized sheet of features to install them correctly, and you can also observe the existing app functions to integrate into your value-based car rental app.
| What are your app’s basic or premium features and functions? |
| Observe the existing cheap car rental apps for the best features. |
| Make an organized sheet of features and functions to reduce data redundancy. |
3. Best Tech Stacks
Moving to the third step of development, choosing the best stacks is a vital part of every app development process. There are various types of tech stacks that are paid, but you have to integrate these tech stacks for a successful development. You need to choose the valuable tech stacks according to your overall development budget.
| Which type of tech stacks are used in your affordable car rental app development? |
| Define your scalability requirements. |
| Choose advanced or basic tech stacks. |
4. Design UI/UX
Coming to the fourth stage of development, hire mobile app developers to design a simple UI/UX that enables customers to quickly access all the functionalities and services of the app. It includes layouts, premium templates, in-built plugins, themes, color, elements UI, and more.
| What are wireframes in UX design? |
| What tools do you use for prototyping? |
| How do you ensure a responsive design? |
5. App Development
Let’s move to the fifth stage of development. You need to assemble highly skilled developers to begin the real coding and create the modules and functionalities. This stage includes various integration modes, such as third-party integrations, API integrations, and more.
| Do you want to create hybrid or native apps? |
| Choose highly talented mobile app developers. |
| Integrate a high number of features and functions. |
6. Testing and QA
Coming to the second last development step, businesses need to connect with an on-demand car rental app development company to conduct testing services such as unit, functional, and integration testing. In QA, make sure all the services and features of the all are working correctly.
| Make sure that all features and functions are working properly |
| Use various testing methods, such as functional and usability testing. |
| Check the app’s security measurements. |
7. Launching and Maintenance
Let’s finish the development process and launch the cheap car rental app in the live phase on the selected platforms, such as Android and iOS. After the successful launch, start the maintenance phase to fix the bugs and glitches and update the older version functions.
| Launch your app on selected platforms like Android and iOS. |
| Use the best marketing techniques. |
| Assign the post-maintenance phases to maintain the app’s performance. |
10 Must-Have Core and Advanced Features of Budget Car Rental App
These advanced features contribute to a seamless, user-friendly, and efficient budget car rental app, increasing both customer satisfaction and business growth. Here are 10 must-have advanced features for a budget car rental app.
1. Real-Time Vehicle Availability
Users can check the availability of automobiles at various locations in real-time, guaranteeing they can readily find a vehicle when needed.
2. Price Comparison Tool
A function that allows customers to compare rental pricing for various car types, rental periods, and locations to identify the most cost-effective solutions.
3. GPS-enabled Location Services
Users can identify local automobile rental locations, drop-off spots, and filling stations based on their present location, which improves convenience.
4. Seamless Payment Integration
Secure and various payment methods (credit cards, digital wallets, etc.) for a seamless and secure transaction, including rental and security deposits.
5. Flexible Booking Options
Users can change or cancel their reservations, choose pickup and drop-off hours, and vary rental lengths, giving them the flexibility they need.
6. Driver Profiles and History
Develop a car rental app like Enterprise, which allows users to create profiles that retain their booking history, preferences, and personal information,.
7. Push Notifications and Alerts
Notify users of booking confirmations, future rental reminders, vehicle availability, and specials to ensure they stay informed.
8. Vehicle Condition Reporting
Allow consumers to inspect and report the condition of vehicles before renting, encouraging transparency and reducing arguments at the return.
9. 24/7 Customer Support
In-app customer service is available for any concerns, issues, or emergencies, ensuring that consumers receive assistance whenever they need it.
10. Loyalty Program and Discounts
To boost retention and increase customer satisfaction, implement an incentive system for recurring customers that includes loyalty points or special discounts.
The Cost to Build a Budget Car Rental App
The cost to make a budget car rental app typically ranges from $8,000 to $25,000, depending on factors like features, complexity, and the development team’s location. Basic apps with necessary functions (car booking, payment integration, etc.) are priced less, whilst more advanced apps with features such as real-time availability, GPS, and a reward program are priced higher. Additional expenses may include continuous maintenance, upgrades, and marketing. The budget-friendly vehicle rental mobile app development cost varies depending on whether you pick native development (iOS/Android) or cross-platform.
Cost to Develop a Budget Car Rental App
| Budget Car Rental App Development
|
Estimated Cost | Time Frame |
| Simple App Development
|
$8000 – $12000 | 2 to 5 Months |
| Mid-Premium App Development
|
$14000 – $19000 | 6 to 8 Months |
| High-Premium App Development
|
$25000+ | 9+ Months |
5 Key Factors That Affect Budget Car Rental App Development Cost
The development cost of a budget car rental app varies based on the app’s design, features, complexity, and the development team’s expertise. These factors combined influence the overall budget car rental app development cost, so careful planning and consideration are essential for staying within financial limits. Here’s a breakdown of the key factors that affect the cost:
1. Simple and Advanced Features
The addition of fundamental features like as booking, payment integration, and location-based services will reduce the cost. However, adding additional features like real-time tracking, user profiles, fleet management, and push notifications will raise the development cost. More complicated capabilities necessitate additional development, testing, and even third-party integrations, which raises car rental software development costs.
| Features | Cost Estimation |
| Core Features(Real-Time Vehicle Availability and GPS-Enabled Location Services) | $8,000 – $10,000 |
| Advanced Features(Flexible Booking Options and Vehicle Condition Reporting) | $13,000 – $19,000 |
2. Application Design
The app’s design is critical to its usability and functionality. Simple, pre-built templates are less expensive, but unique designs with intuitive UI/UX, animations, and a visually appealing layout will incur additional costs. High-quality designs that prioritize seamless navigation and responsiveness across devices necessitate more time and expert designers, raising the cost to build a car rental mobile app.
| Design Quality | Cost Estimation |
| Basic Design | $8,000 – $12,000 |
| Complex Design | $15,000 – $22,000 |
3. Development Team
The development team’s talent, experience, and location all contribute significantly to costs. Local developers, particularly those in high-wage countries, may demand greater rates than offshore development teams. Experienced teams who specialize in mobile app development and have a thorough understanding of the vehicle rental business usually charge higher rates.
| Developer’s Experience Level | Cost Estimation |
| Entry-Level Developer | $15 – $18/ Per Hour |
| Mid-Level Developer | $18 – $22/ Per Hour |
| Senior-Level Developer | $25+ / Per Hour |
4. Back-End Development
The backend of a car rental software manages servers, databases, user authentication, vehicle data, and payment systems. A complicated back-end with real-time data, booking administration, inventory updates, and interaction with external services such as GPS and payment gateways necessitates additional time and resources. Scalability, security, and speed contribute to the development cost as a strong back-end infrastructure.
| Backend Development | Cost Estimation |
| Basic Backend Process | $10,000 – $18,000 |
| Premium Backend Process | $20,000 – $28,000 |
5. Support and Maintenance
Post-launch support and continuing maintenance are required to keep the app functional and up to date. This includes bug fixes, assuring compatibility with future OS upgrades, introducing new features, and enhancing speed. These ongoing costs must be addressed when calculating the total cost of development, as long-term support might consume a large amount of the budget.
| Maintenance Phase | Cost Estimation |
| Simple Maintenance Phase | $2,000 – $4,000/year |
| Complex Maintenance Phase | $7,000 – $9,000/year |
How to Generate Profit From Budget Car Rental App?
Businesses can generate profit from a budget car rental app by employing commission models, subscription plans, dynamic pricing, in-app advertising, and offering value-added services. Below are five effective methods businesses can use:
- Commission-Based Model
- Subscription Model
- Dynamic Pricing
- Advertising and Sponsored Listings
- Value-Added Services
1. Commission-Based Model
One of the most typical ways to make cash is to charge a commission for each booking made through the app. In this arrangement, automobile rental companies or individual car owners post their vehicles on the app, and the platform receives a share of each rental transaction. The commission normally ranges between 10% and 20%, depending on the market and service given. This model assures that revenue increases with the number of transactions.
2. Subscription Model
A subscription model allows businesses or frequent customers to pay a recurring price to access premium capabilities. Businesses, for example, can pay for monthly or annual subscriptions to list their vehicles on the app, whereas users can choose a subscription plan that includes benefits such as discounts, priority booking, or free upgrades. This consistent, predictable revenue source might be critical to long-term prosperity.
3. Dynamic Pricing
Budget automobile rental apps, like ride-sharing platforms, can use dynamic pricing to adjust for demand, seasonality, and location. Prices can rise during peak seasons, holidays, or periods of strong demand, allowing the app to collect more cash. This pricing methodology not only maximizes earnings but also helps businesses stay competitive in a volatile market.
4. Advertising and Sponsored Listings
Businesses may monetize the app even further by including advertisements. Sponsored listings or in-app adverts can be purchased by car rental companies, sellers of automotive accessories, or related services. Businesses, for example, can pay for first-page search results or market their automobiles to a specific audience. According to the mobile app development company, this strategy can be a terrific revenue-generating tool while preserving the consumer experience.
5. Value-Added Services
Offering additional services can also result in profit. These could include insurance packages, GPS rentals, child car seats, or roadside help. Businesses that offer these value-added services directly through the app might boost their overall revenue per consumer. Users may value the convenience of booking everything in one spot, making them more ready to pay for these additional services.
Conclusion
It’s time to finish the blog with final remarkable thoughts. We explored how to build a budget car rental app and how it can be beneficial for businesses to invest in it. The economy vehicle rental app enables users to book a car according to their availability and flexibility, and they can also search for nearby availability of cars and quick pick-up service is available. We also provide detailed information about the cost and what factors can affect the development cost.
Are you looking to make a budget car rental app? So, what’s holding you back? Connect our leading car rental app development company to provide affordable app development solutions.
Frequently Asked Questions
1. How Much Does It Cost To Build a Budget Car Rental App?
The cost to develop a budget car rental app typically ranges from $8,000 to $25,000, depending on factors like features, complexity, platform (iOS, Android), and the development team’s expertise and location.
2. How Much Time Does It Take To Create a Budget Car Rental App?
Creating a budget car rental app typically takes 3 to 9 months, depending on the app’s complexity, features, and the development team’s expertise. Factors like design, testing, and integration can influence the overall timeline.
3. What are the Key Features of a Budget Car Rental App?
Key features of a budget car rental app include vehicle search and booking, real-time availability, secure payments, GPS navigation, user profiles, ratings and reviews, booking management, notifications, and admin fleet management.
4. What is the Best Way to Monetize a Budget-Friendly Vehicle Rental App?
The best ways to monetize a budget-friendly vehicle rental app include commission-based fees, subscription models, dynamic pricing, in-app advertisements, and offering value-added services like insurance, GPS, or premium customer support.
