Renting Out Electric Cars: Good Business or Too Risky?

Electric cars are becoming increasingly common on the roads, so it seems only natural to ask: is it worth buying an electric car to rent out?

At first glance, they have many advantages. They’re quiet and modern, their energy costs may be lower, and they have fewer conventional wear-and-tear engine parts.

However, when renting out a car, you need to look beyond what it’s like to drive.

You also need to consider how easy it is to hand over, collect, recharge, and get it ready for use again between rentals. That’s where things get more complicated.

Renting Out Electric Cars: Good Business or Too Risky?

One of the biggest advantages of an electric car: attractive and modern

An electric car appeals to many renters.

Some want to try one out for a few days before buying.

Some already drive an electric car at home.

Others are simply curious.

That’s why a well-chosen electric model can be a more distinctive offering in its own right than an average small petrol car.

It’s also especially pleasant to drive in the city.

Automatic.

Quiet.

Easy to drive.

Often well equipped.

The problem starts with charging

With a conventional car, you can apply a very simple rule:

you receive it with a full tank, and return it with a full tank.

If the renter forgets to refuel, the problem can be sorted out in a few minutes.

With an electric car, it’s not so simple.

What should the rule be?

Do you hand it over with an 80% charge?

100%?

Does it have to be returned with the same charge level?

What happens if it’s returned at 17%?

Battery charge percentages can create far more disputes and operational complications than a conventional fuel gauge.

Charging takes time

This is perhaps the biggest business drawback.

If a petrol car is returned with an empty tank, you take it to a gas station and it’s ready again soon.

With an electric car, however, even fast charging takes time.

And if only slower charging is available, you may have to allow for several hours.

So if two bookings are close together, a car returned with a low charge could put the next rental at risk too.

That’s why it’s worth leaving a longer buffer between rentals for an electric car.

It’s much harder without your own charger

If you have your own parking space and charger, operating an electric rental car is much simpler.

The car comes back.

You plug it in.

A few hours later, it’s ready to use again.

But if you have to find a public charger every time, it will take up more of your time.

For rentals, charging infrastructure is therefore at least as important as the car itself.

If you don’t have reliable access to charging, it’s worth thinking this through carefully before you buy.

You also need to explain more to the renter

With a petrol car, it’s usually enough to say:

Fill it up with 95-octane petrol.

With an electric car, you may need to explain:

which connector to use,

where to charge,

how to start charging,

which app they need,

what charge level it should be returned at,

and what to do if a charger isn’t working.

None of these is a major problem on its own.

But every additional rule increases the need for customer support.

In a well-automated car rental system, the goal should be to minimize the number of questions that come up.

Range also depends on the renter

An electric car can be very convenient for city driving.

A trip of several hundred kilometers abroad is a different story.

The renter has to plan the route, find charging points, and understand the car’s range.

That’s why it’s even more important with an electric car to advertise it to the right target audience.

City driving and shorter rentals?

It could be a great fit.

A week-long European road trip?

That raises more questions.

Battery health: don’t overlook this either

Battery health is especially important when buying a used electric car.

It’s not just the odometer reading that matters.

It’s also important to know how much of the original battery capacity remains.

If the car could travel 400 kilometers when new, but can go significantly less after a few years, that can affect both the renter’s experience and the car’s value.

That’s why, when buying an electric car, checking the battery’s condition is just as important as inspecting the engine or transmission of a conventional car.

And what happens if there’s damage?

Electric cars aren’t necessarily more dangerous, but some repairs can be more expensive.

Damage to the battery pack or a problem with the high-voltage system can come with a hefty price tag.

That’s why, for a higher-value electric rental car, it’s especially important to have insurance coverage suitable for rental use.

It’s not a good idea to rely on a small security deposit to solve the problem.

What about from Qber’s perspective?

One of Qber’s core principles is to make renting as simple as possible.

Fewer manual processes.

Less in-person coordination.

Less uncertainty.

In this system, a petrol or diesel car is currently easier to manage:

handed over with a full tank → returned with a full tank.

An electric car adds a number of charging rules to this.

That’s not impossible to manage.

But it requires more automation and more rules.

So, is an electric car a bad investment?

No.

It’s just not necessarily the easiest first rental car.

It can be a great choice if:

  • you have your own charging facilities,
  • you’re targeting city or shorter trips,
  • there’s a good charging network in the area,
  • and you’re targeting renters who see an electric car as an advantage.

It’s less ideal if:

  • you don’t have your own charger,
  • you want to schedule bookings back-to-back,
  • you expect a lot of long-distance or international rentals,
  • and you want the simplest operation possible.

As a beginner, I’d start with something simpler

If you’re looking for your first rental car, a reliable petrol car or conventional hybrid is often a simpler choice.

Fewer new rules.

Fewer customer service questions.

Quicker “refueling.”

More predictable returns.

An electric car can be a really good investment once your operations are well established and you know exactly how you’ll handle charging and renters’ expectations.

Because renting out an electric car can be a good business.

It just takes a little more planning to make it work.

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