Car rental glossary
99 industry terms explained in plain English.
A
A four-letter industry code describing a vehicle's category, type, transmission and fuel/air-con.
Another person authorised to drive the rental car.
A fee for processing fines, tolls or damage claims.
A surcharge for pickup or return outside opening hours.
Returning the car when the branch is closed.
An extra fee for rentals from airport locations.
Income from extras, protection and fees beyond the base rental.
Whether a vehicle or category is free for requested dates.
B
Invoicing a business customer later instead of taking payment at pickup.
The part of a website that searches availability, quotes and takes bookings.
How far in advance a booking is made before pickup.
How quickly future dates are filling up compared to past periods.
A third-party website that sells rentals on behalf of rental companies.
A car bought with a manufacturer promise to repurchase it later.
C
The rules and fees for cancelling a booking.
Converting a card pre-authorisation into an actual charge.
A monthly fee that includes the car, insurance and maintenance.
An optional waiver that limits what a renter pays if the rental car is damaged.
Software that syncs rates and availability to multiple booking sites.
The process when the customer returns the car.
The handover process when the customer collects the car.
The percentage a broker or agent keeps from a booking.
Pickup and return without meeting staff at a counter.
A business customer with agreed rates and invoiced billing.
A charge for taking the rental into another country.
A list of customers the company will not rent to.
D
A record of new or existing damage, its location and severity.
Bringing the car to the customer and picking it up afterwards.
The loss in a vehicle's value over time.
A booking made on the rental company's own website or by phone.
The branch or address where the renter returns the vehicle.
A cheaper daily rate that applies to longer rentals.
Rates that change automatically based on rules such as demand, lead time or fleet availability.
E
Signing the rental agreement on a phone or tablet.
The maximum amount a renter pays towards damage or theft before cover applies.
A per-kilometre or per-mile fee for distance above the allowance.
Optional items rented with the car, such as child seats or snow chains.
F
Removing vehicles from the rental fleet, usually to sell them.
The number of vehicles a rental company operates.
Payment a franchisee makes to a rental brand for using its name and systems.
An independent business operating under a rental brand.
The rule for how much fuel the car must have on return.
G
I
K
L
A charge when the car comes back after the agreed time.
A waiver covering both damage to and loss (theft) of the rental vehicle.
Checking a renter's driving licence is valid.
Rentals of a month or more, sometimes called mini-lease.
Rewards for repeat customers, such as points or tiers.
M
N
O
Booking wording meaning the customer gets a car from the category, not a guaranteed model.
The vehicle's distance counter, recorded at pickup and return.
A charge for returning the vehicle to a different location than pickup.
Customers submit licence and details before pickup.
A travel booking site that sells car rental alongside flights and hotels.
A vehicle that cannot currently be rented.
Accepting more bookings than available cars, expecting some no-shows or cancellations.
P
Cover for medical costs of the driver and passengers after an accident.
Paying for the rental at pickup rather than online.
A temporary hold on a customer's card that reserves funds without charging them.
Paying for the rental in full or in part when booking.
Servicing vehicles on schedule by date or mileage.
A code that gives a discount when booking.
A bundle of waivers and cover sold together at one daily price.
R
A set of prices for a category, often with daily, weekly and monthly rates.
A new customer recommended by an existing one.
A fee for returning a vehicle with less fuel than required.
The contract between the rental company and the renter.
Moving vehicles between branches to match demand.
A vehicle's expected value when it leaves the fleet.
Rental revenue divided by the number of available cars in a period.
A vehicle the rental company owns outright and sells itself.
Ongoing percentage of revenue paid by a franchisee to the franchisor.
Average rental revenue per rental day.
S
An upgrade to CDW that reduces the renter's excess, often to zero.
A price adjustment that applies during a set date range.
Money held against damage, fuel, fines or late return.
The original name for the four-letter car classification now maintained as ACRISS.
Extra third-party liability cover above the legal minimum.
T
Prices shown with sales tax or VAT already included.
Devices in vehicles that report location, mileage, fuel and driving data.
Utilisation measured in hours or days rented against hours or days available.
Road or bridge usage fees incurred during a rental.
A waiver limiting the renter's liability if the vehicle is stolen.
A penalty for speeding, parking or tolls incurred during a rental.
The time needed between one return and the next pickup.
U
V
Y
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