Car Lease App Development from Market Size to App Features and the Cost of Car Lease App

By Ruchir C.

Connected car apps are popular because of their high performance and growing demand. The market for connected car apps is expected to rise to $85 billion in 2022 due to the increased adoption of next-generation IoT technology within the automotive industry. As a result, investing in connected car app development will generate revenue for businesses.

Automotive is quickly moving to the next level in intelligence through automotive software development services and connected-car app development. Particularly, connected car apps are leading the way in digitizing the automotive sector. Connected car apps offer many benefits, including enhanced security and driving experience, car-to-car communication, and finding parking spots.

You know the struggle to be a car rental company owner. It's impossible to make all drivers around the globe your customers. However, there is a way to stand out among the rest by developing a mobile app for car rentals that attract new customers.

Market Size of Car Lease App Development Industry

According to a recent market study, the Car Leasing Market Share will increase by 18.38 Million units between 2020 and 2025 with an accelerated CAGR (of 15.17%)

  • The rising technological obsolescence in older cars is one of the main drivers of the car leasing market growth.

  • The main trend driving the growth of the car leasing market is off-lease cars.

  • One of the main obstacles to the growth of the car leasing market is the low customer awareness and acceptance in rural and semi-urban areas.

  • APAC will experience the fastest growth rate, 78%, compared to other regions. The APAC car leasing market is expected to generate significant business opportunities during the forecast period.

  • Many APAC countries lifted restrictions placed on businesses during the quarter ending in 2020. The COVID-19 guidelines were followed by vendors, allowing them to resume routine operations.

  • These initiatives will help vendors remain operational, and the market will slowly recover during the forecast period.

  • Car leasing market vendors need to focus on the commercial segment, which accounted for the largest market share during the base year.

What is On-Demand Car Rental Mobile App?

A car rental app allows anyone to rent a car from their smartphone. The app allows car owners to rent their vehicles and generates additional revenue. It allows the user to choose from many options and then pay accordingly.

Some people believe that renting a car poses a risk, but the car is insured by its owner. Therefore, both the car owner and users will suffer losses.

How Does Car Rental App Work?

The following is how peer-to-peer car-rental applications work:

  • Register your car and list it in the app in just a few steps. You can also mark the dates in-build to notify users about cars' availability.

  • Register using your email address or social media account to register and browse the available cars.

  • After choosing the car they want, the user can request that the car owner rent it for x hours.

  • The car owner accepts or rejects the request within a set time frame. After the request has been accepted, the customer and the owner can set up a time and place for the car to pick up.

  • Before picking up the vehicle, customers must verify that the papers are correct. The owner must also verify the fuel consumption, driving license, and key before renting the car.

  • Final note: Payment can be made through the car rental app platform either before or after the trip, depending on the comfort of both parties.

How Businesses Make Money with Car Lease App Development?

You might now be able to see that car rental apps exist to rent cars to customers for various purposes. Now it's time for you to learn how you can make money by creating a car rental app.

Commission Base

This revenue model allows you, the app owner, to provide a platform where other car owners can list their cars and connect with more customers. You also provide rental services. As a service fee, you will receive a fixed commission.

Renting Your Car Fleet

This is the quickest way to make money. You can rent out your cars to users in this model. You will need to have cars and assign them, multiple drivers. The base fare is paid, and drivers are paid on a service basis.

Types of Car Rental Mobile Applications

When entrepreneurs want to make a mobile app that maximizes their earnings, they look for the best. The same applies to the car rental app. It is difficult for businesses to decide which of the many car rental apps to invest in.

Outstation Car Rentals

It is expensive to hire a taxi to take you out of the station. It is easier and cheaper to rent a taxi and take it wherever you go. Your car rental app provider should offer outstation services to reach a wider audience.

Local Car Rentals

Hire car rental app developers who are experts in the field to create a car rental application that caters to locals and tourists. These services allow users to rent a car, go anywhere they like, and even pay for it. You can rent the car for a full day, half-day, or an hour. You can also pick up and drop off at airports.

Self-driven Car Rentals

This allows users to rent a vehicle and then drive it. The service provider would deliver the car to them. The user must return the car to the agreed location after the trip. This affordable option is great for those who don't have a four-wheeler but are skilled in driving.

Corporate Car Rentals

Corporate industries are using technological advances to reap the benefits of car rental apps. It can be used to help users move around in a new area and also allow them to rent vehicles from corporate companies. These services were previously limited in availability, but they are now highly sought after by users.

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Top on Demand Car Rental Mobile Applications

It used to be difficult to rent a car. But now, it is much easier, thanks to the advent of car rental apps. In the past, you had to locate a car rental location via a map app and then call or go in person to reserve a vehicle. You can now find the best car rental deal with just a few clicks on an app.

Some apps only allow you to rent a car, while others let you book flights or reserve hotel rooms. It all depends on what you need. These are the top car rental apps.

Hertz

Hertz is a well-known name in the car rental business. There are many Hertz locations in the United States and other countries. This makes it easy to locate a rental car wherever you need it. SpotHero makes it easy to pick up and drop off at different locations. You can also get assistance finding parking.

Turo

Turo is a new way to rent a car. It's more like a car-sharing app, and it's also the largest. Turo has many cars you can rent, whether a car to take you to work or a car to drive you on a road trip.

Priceline

Another great app that allows you to search for the best car rental deals and hotels, and flights is Priceline. Many car rental options are available, whether you need a cheap vehicle or a luxury ride.

Skyscanner

Skyscanner is an app that helps you find cheap car rentals. The app breaks down every car rental for you. It gives you information about its insurance, fuel policy, and other details to ensure you get the right car.

Alamo

Alamo is a reliable car rental app, and it's easily one of our favorites. The app is easy to use and allows you to find the car you want quickly, whether a small car or an SUV for a large family. In addition, the app will display information about the car, such as its mileage, capacity to hold luggage, and how many people it can accommodate.

Common Features to Include in Car Rental Mobile Applications

A well-designed feature list can make your vehicle lease management app solutions more flexible and user-friendly for all involved. This includes clients, service providers, administrators, and even the administrator.

Each panel must possess unique characteristics to be competitive and stand out from the rest. These features will determine the cost of developing a car rental app. Take the time to read this article and choose the right features for your app.

User Panel Features 

  • Login/Registration

  • Take a ride

  • Book Now

  • Book Your Reservations

  • Fare Calculator

  • Receipts and Payments

  • Notification

  • Security Tracker

  • Cancel booking

  • Delivery to your door

  • Point of Pickup for Cars

Admin Panel Features

  • Dashboard

  • Car Management

  • Customer Management

  • Payment Manager

  • Analytics & Real-time Reports

  • Manage Car Category

  • Manage Fares/Location-Based Charges

Service Provider Panel Features 

  • Login and Sign up

  • Check the Request and Respond

  • Details about the Journey

  • Dashboard for the Driver

  • Payment

  • Get feedback

  • Navigation

Advanced Features of Car Rental Mobile Application

To thrive in competition and allow for the free flow of work within the company, it is important to hire the right people to work on the app's advanced features integration.

Assign Drivers

The app allows users to book the driver and car together. After reading reviews and ratings on the app, they can choose a driver. This is a great option for people who need to book a long-term ride. You can also request information such as gender, rating, and years of experience.

Payment Gateway

If there isn't transparency or the price displayed on the screen at the time of the booking, it can cause concern. However, it is now possible to book a reservation without hassle with various payment options, including online banking, debit/credit cards, e-wallets, and UPI.

GPS Tracking for Pick-Ups and Security

The GPS tracking feature has allowed the business to run smoothly and is a key safety feature. The user can access the driver's location, and he can then navigate to the pickup point. The live location of the car is also available to the user and his family members.

Offers

A car rental company must offer customers attractive offers to get them to book a service through your app. Customers who return to your app often love special pricing for the services they use.

Communication and Notification

Apps provide timely notifications to users of all details. This ensures transparency. They will receive a notification with any booking information. Before the car is delivered, they will receive the details and price.

Email and Message

The details of the service should be sent via push notifications. However, the information should also be sent to users on their mobile device's email address or as a text message. They can save these details from being used again if necessary.

Multiple Bookings

This feature allows users to make as many bookings as they wish at once. He can also make reservations for multiple locations through the apps.

Floating Window

This allows users to book a car quickly. In addition, they can save their location and make a quick booking between two places he frequents.

CRM Integration

Customer relationship management is an important feature of any app. This allows customers to get in touch with support staff who can listen to and respond to their questions anytime.

Panic Button

Maintaining decorum with your drivers is a good idea. In addition, the app should have a panic button that allows passengers or users to raise alarms if they feel something is wrong during a ride.

Things to Consider While Developing a Car Rental Mobile Application

The car rental service is convenient for the users and generates income for the service provider. You need to understand the cost of developing a car rental app to make your business idea more profitable. These are the top things to consider when developing a mobile app for car rental.

Insurance

All vehicles that are being used for this service must be insured. The insurance papers should then be given to the clients/users upon vehicle delivery.

Speed Limit

According to their local speed limits, car rental providers can place a limit on cars. The tickets can be cut online, and any car that exceeds the speed limit will receive a ticket. Therefore, informing the users in advance about the need to maintain the speed limit is important.

User Authentication

After signing up, all users who use any service provider service must be authenticated using the app. For the records of service providers, their details, including addresses and contact information, should be correctly listed.

Service and Maintenance

Users should be aware of the services offered by service providers. A brief description of car maintenance should also be included in the app. This allows for transparency between service providers and users.

Safety and Security

On-demand apps should follow the government's guidelines and provide users with safety precautions. Apps may also offer roadside assistance, which can be a great way to give users a sense of security. For example, they can immediately call the service providers for assistance if a car is experiencing a breakdown.

Fuel Policy

Each app works differently. Some apps might provide fuel initially and then ask the user to fill up later. Others might require that the user pick up the car from a particular spot and refill their fuel. If a user does not wish to spend their time waiting at a station, they can request fuel for the car. There would be additional charges.

Damage Policy

The app requires that the user takes responsibility for any damage to the car during the course. In addition, before using their service, the user must sign an agreement.

Cost of Developing a Car Rental Mobile App

Before developing best vehicle lease management solution, car rental companies should identify their target audience and what features they would like to have. The more complex an app is, the higher it will cost. The cost of an app with a few features may seem affordable if the company is starting. You have two options: Hire a team of developers or designers from a car rental company, or hire freelancers who will work hourly or daily.

An app for renting a car will cost you between $17,000 and $30,000. Therefore, the cost of developing an app for car rental apps will be approximately $17,000 to $30,000.

Conclusion

This blog must have helped you estimate the cost of custom automobile app development. You can also consult the automotive app development company regarding your next project.

Automotive is one of the most important industries and is growing rapidly. Manufacturers need to find innovative solutions for vehicle owners. Mobile apps are a powerful tool in this regard. An automotive app can be a great way to help customers if you own an auto business.

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