A new era in car rentals: Authorization certificates, age-mileage limits, and deposit rules are coming

The Regulation on the Rental of Motor Land Vehicles, prepared by the Ministry of Trade, has been published in the Official Gazette. The regulation introduces a mandatory authorization certificate for businesses that rent out motor land vehicles for commercial purposes.

With these new rules, the Ministry aims to increase service quality in the sector, prevent unregistered activities and unfair competition, protect consumer rights more effectively, and raise technical standards for rental vehicles.

To obtain an authorization certificate, businesses will be required to be registered with a professional chamber, be a taxpayer, and ensure that business managers meet the specified conditions. Applications and procedures related to the certificate will be conducted through the Motor Land Vehicle Rental Information System to be established by the Ministry of Trade. The system is planned to be launched by January 1, 2027.

AGE AND MILEAGE LIMITS FOR VEHICLES

The regulation also sets age and mileage limits for vehicles that can be rented. Excluding classic vehicles, vehicles older than 6 years cannot be rented out. A limit of 180,000 kilometers will apply to internal combustion and hybrid vehicles, while a limit of 300,000 kilometers will apply to electric vehicles.

Vehicles that have not undergone periodic maintenance on time or have a record of heavy damage will not be permitted for rental. Additionally, businesses will be required to provide winter tires when seasonal conditions, traffic, and tenant safety necessitate it.

A minimum vehicle requirement has also been introduced for the fleets of rental businesses. Businesses operating in districts with a population exceeding 30,000 in provinces with metropolitan municipalities will be required to have a total of at least 10 vehicles, with at least 5 registered in their own name. In districts with a population of 30,000 or less and in provinces without metropolitan municipalities, this requirement will be applied as a total of 5 vehicles, with at least 2 registered in the business's name.

Businesses in districts with a population exceeding 30,000 will also be required to have at least 2 hybrid or purely electric motor vehicles in their fleets, provided that at least one of them is produced in Turkey.

NEW RULES FOR DEPOSITS AND RESERVATIONS

The regulation also covers consumers' rights regarding deposits and reservations. Accordingly, for rentals of 1 to 6 days, the deposit that can be collected will be at most the equivalent of a 3-day rental fee. For rentals of 7 to 29 days or weekly rentals, the deposit can be collected as at most the equivalent of a 7-day rental fee.

It will be mandatory to return the deposit to the consumer within 7 days after the vehicle is returned. Consumers cannot be charged for wear and tear caused by ordinary use; no deductions can be made from the deposit for this reason.

For pre-paid reservations, provided that there is at least 24 hours left until the vehicle delivery, the consumer will be able to change or cancel the reservation without showing any reason and without any deductions.

Insurance coverage will be included in the rental fee. The tenant's right to benefit from insurance cannot be tied to an additional fee or condition. Furthermore, without an insurance arbitration decision or another decision with the force of a court ruling, no fee can be demanded from the tenant on the grounds of loss of value.

Rental businesses will be obligated to establish a continuous and accessible communication infrastructure that tenants can reach at any time in case of damage or breakdown.

The regulation also imposes new responsibilities on advertising and intermediary platforms. Platforms will check whether businesses posting rental ads have an authorization certificate. Businesses without an authorization certificate will be prevented from becoming members of platforms and posting ads.

The new regulation will enter into force on January 1, 2027. Existing businesses will be granted until July 1, 2027, for the authorization certificate, and until January 1, 2028, to meet the requirements regarding the minimum number of vehicles and vehicle specifications. Contracts signed between intermediary platforms and rental businesses before the regulation will also need to be brought into compliance with the new rules by July 1, 2027.