New Age and Mileage Caps in Car Rental: Impact on Consumers

Car rental companies face a seismic shift after the Ministry of Trade issued its 15 August 2026 regulation.

Fresh Age Threshold: Vehicles Over 6 Years Banned from Rental

■Any motor vehicle older than 6 years will be excluded from the rental market.

■Classic cars are exempt, but newer fleets must consist of younger, lower‑mileage vehicles.

■This forces owners of aging fleets to seek fresh investment.

Mileage Caps: Diesel/Petrol vs. Electric Vehicles

■Diesel and petrol cars are limited to 180 k km.

■Electric vehicles enjoy a higher ceiling of 300 k km.

■Heavily damaged or overdue‑maintenance vehicles are barred from rental services.

Deposit Limits and Consumer Safeguards

■For rentals of 1‑6 days, deposits are capped at three days' rent.

■For rentals of 7‑29 days, the cap rises to seven days' rent.

■Deposits must be returned within 7 days of vehicle return; no deductions for normal wear and tear.

■Pre‑paid rentals allow a 24‑hour window for penalty‑free cancellation or modification.

Operator Requirements and EV Incentives

■Operators must maintain a minimum fleet of 5‑10 vehicles per jurisdiction.

■In districts with populations exceeding 30 k, firms must hold at least 2 hybrid or electric cars, one of which must be domestically produced.

■Listings without a valid operating licence are prohibited; online platforms must enforce this compliance.

Zeynep Turan – Consumer Financing and Mortgage Strategy Specialist: The regulation pushes rental firms toward newer, lower‑mileage fleets, which should lower maintenance costs and raise safety for consumers. However, smaller operators will need additional financing to refresh their fleets; softer credit terms and low‑interest loan products will be essential to smooth this transition.