New Era In The Car Rental Sector: New Regulation, New Rules Of The Game

I. Introduction

The Regulation on the Rental of Motor Vehicles (“Regulation”) was published in the Official Gazette dated 15 August 2026 and numbered 33341. The Regulation aims to bring motor vehicle rental activities under a centralized regulatory and supervisory framework, standardize contractual relationships, and establish a more stringent oversight regime for industry practices. It also directly regulates listing and intermediary models, thereby bringing platforms within the scope of regulated actors in the vehicle rental ecosystem.

This memorandum sets out the key provisions introduced by the Regulation.

II. Legal Basis, Purpose and Scope of Regulation, Coverage and Excluded Activities

1. Legal Basis of the Regulation

The Regulation has been introduced pursuant to Presidential Decree No. 1 on the Organization of the Presidency, Law No. 6585 on the Regulation of Retail Trade and Law No. 6563 on the Regulation of Electronic Commerce. It constitutes a comprehensive secondary regulatory instrument aimed at establishing a holistic and centralized regulatory and supervisory framework for motor vehicle rental activities. The Regulation demonstrates that the Ministry of Trade (“Ministry”) is exercising its regulatory powers in respect of both retail trade activities and platform activities falling within the scope of electronic commerce.

2. Purpose and General Scope of Regulation

Pursuant to Article 1, the purpose of the Regulation is to establish the procedures and principles applicable to motor vehicle rental activities. The Regulation governs;

• Motor vehicle rental activities carried out by natural or legal person merchants, as well as tradespeople and craftspeople;
• The issuance, amendment and cancellation of motor vehicle leasing authorization certificates; and
• The procedures and principles governing the establishment and operation of the motor vehicle leasing information system (“Information System”);
• The rights and obligations of the lessor and lessee in motor vehicle rental transactions;
• Prepaid reservations and rentals concluded through electronic means;
• The obligations of listing platforms and intermediary platforms;
• Regulations concerning unfair commercial practices;
• The principles, rules and obligations applicable to motor vehicle rental listings; and
• The duties, powers and responsibilities of the Ministry, competent authorities and other relevant public institutions and organizations in relation to motor vehicle rental activities.

Scope and Excluded Activities

As the concepts defined in the Regulation forms the basis of the regulatory framework, these concepts should first be clarified. Pursuant to Article 4(1)(g) of the Regulation, an “enterprise” means a business operated by a tradesperson and a craftsperson, a commercial enterprise and a commercial company engaged in motor vehicle rental activities. Under subparagraph (h) of the same provision, a “rental agreement” is defined as an agreement under which an enterprise grants the lessee the right to use a motor vehicle over which the enterprise has the power of disposition, for a specified period and in consideration of a fee. When these definitions are considered together, rental activities falling within the scope of the Regulation are understood to be activities carried out, pursuant to an authorization certificate, by an enterprise having the power of disposition over the relevant vehicle.

Motor vehicle rental activities carried out on a commercial basis cannot be conducted without an authorization certificate. The requirements for obtaining an authorization certificate direct the sector towards enterprises of a certain scale and organizational structure, with requirements relating to minimum fleet size, registration, hybrid/electric vehicles, insurance and professional qualifications promoting a more institutionalized business model.

The Regulation, however, does not merely regulate authorization and structural requirements; it also imposes detailed requirements concerning the content of rental agreements and the rental process. When the minimum contractual requirements, pre-contractual information obligations, deposit restrictions and record-keeping obligations are considered together, it becomes apparent that rental activities are subject to a stringent supervisory framework.

Pursuant to Article 2(2) of the Regulation, the following activities are expressly excluded from its scope:

1. long-term rentals, meaning motor vehicle rental services provided to the same lessee for a period of thirty days or more, whether as a single rental period or through consecutive rental periods;
2. short-term rentals where the lessee is not a consumer, meaning motor vehicle rental services provided to the same lessee for a maximum of twenty-nine days, whether as a single rental period or through consecutive rental periods;
3. shared rentals, meaning motor vehicle rental services generally intended for individual use, initiated and terminated through a website or mobile website/application pursuant to a membership agreement, typically provided on a per minute or hourly basis, where the relevant vehicle may be freely collected from and returned to a common vehicle pool without being restricted to designated delivery points and without requiring the parties to meet in person; and
4. campervan rentals.

III. Key Obligations Introduced by the Regulation

1. Obligation to Obtain an Authorization Certificate

Pursuant to Article 5 of the Regulation, motor vehicle rental activities cannot be conducted on a commercial basis without obtaining an authorization certificate.

Article 6 sets out the requirements for obtaining such certificate. Accordingly, an applicant must: (i) be subject to income or corporate income tax; (ii) be registered with the relevant professional chamber; (iii) have motor vehicle rental activities included among the activities registered with both the relevant professional chamber and the tax administration; (iv) use its business premises exclusively for the relevant rental activity and not for professional or commercial activities or residential purposes other than authorized dealership, insurance, roadside assistance and towing services, and the sale of tires and accessories; (v) ensure that the person designated as the motor vehicle rental officer is at least eighteen years old; have completed at least primary education; not be bankrupt or, if previously declared bankrupt, have been rehabilitated in accordance with the Enforcement and Bankruptcy Law No. 2004 dated 9 June 1932; satisfy the criminal record requirements prescribed under the relevant provision; and hold the requisite professional qualification certificate.

The Regulation also introduces certain requirements regarding the characteristics of vehicles offered for rental by enterprises. Accordingly, the vehicles rented by the enterprise must be registered in the Information System, should not have a record of severe damage, should have a valid vehicle inspection and being covered by compulsory third-party liability insurance. In districts of metropolitan municipalities with a population exceeding 30,000, the enterprise must have at least ten vehicles, at least five of which must be registered in the name of the enterprise and the remainder may be procured through leasing, provided that at least two of the vehicles are hybrid or fully electric motor vehicles and one of those vehicles is manufactured in Turkey. In districts with a population of 30,000 or less and in provinces that are not metropolitan municipalities, the enterprise must have at least five vehicles, at least two of which must be registered in its name, and the remainder may be procured through leasing. In addition, except for classic vehicles, the vehicles must not be more than six years old based on their model year, must not have exceeded 300,000 kilometers for electric vehicles and 180,000 kilometers for other vehicles, must not have a record of severe damage, and must have a valid vehicle inspection.

These requirements demonstrate that the Regulation does not merely subject the sector to an authorization regime but also directs it towards a business model supported by a certain level of capital, fleet renewal and operational capacity.

2. Obligation to Enter into a Rental Agreement

Pursuant to Article 10 of the Regulation, the enterprise and the lessee must enter into a rental agreement in writing or electronically, and a copy of the agreement must be provided to the lessee physically or electronically by the enterprise before delivery of the vehicle. Prior to execution of the agreement, the enterprise must provide the lessee with pre-contractual information in writing or electronically. The Regulation also sets out, as minimum requirements, the information and particulars that must be included in rental agreements, and such agreements must therefore be prepared accordingly.

Where the agreement is concluded through an intermediary platform, the enterprise and the intermediary platform shall be jointly liable for providing the pre-contractual information and delivering the agreement to the lessee. However, in this case, the intermediary platform's liability is limited to ensuring that the information and documents provided to it by the enterprise are transmitted to the lessee fully and accurately.

The enterprise is obliged to perform its checks regarding the lessee and the rental conditions prior to the execution of the rental agreement, whether in writing or electronically. Following the execution of the rental agreement, the enterprise cannot withdraw from the agreement without legitimate reason. In the event that no new agreement is executed despite obtaining the lessee’s extension consent in writing or electronically, the rental period shall be deemed extended under the same terms and conditions.

Finally, as an obligation imposed on enterprises, intermediary platforms and listing platforms, rental agreements and other documents and forms relating to rental transactions must be retained accurately and completely for five years from the date of the relevant transaction or agreement and must be kept available for inspection.

3. Obligations Regarding Prepaid Reservations

Pursuant to Article 11 of the Regulation, in prepaid reservations, the enterprise must prepare a reservation form with the lessee's approval, and a copy of the form must be sent to the lessee electronically on the date on which such approval is obtained and the prepayment is made. The Regulation also specifies the minimum information to be included in the reservation form.

Immediately before the lessee confirms the reservation, the enterprise must clearly and comprehensibly inform the lessee that confirmation of the reservation constitutes an obligation to make the relevant prepayment. If such information is not provided, the lessee will not be bound by the reservation or the obligation to make the prepayment.

For prepaid reservations, the vehicle must be delivered to the renter on the date, at the time and at the location specified in the reservation form. Unless there is a justified reason, the rental company may not refuse to fulfil this obligation or cancel the reservation.

The renter may, on the date the reservation is made and without providing any reason, change the rental date, time or location or the segment of the vehicle to be rented, or cancel the reservation. As a rule, no fee may be requested or collected from the renter for cancellations made in this manner.

However, this free cancellation rule does not apply if the reservation is cancelled within twenty-four hours before the scheduled delivery time. In such case, provided that it is specified in the reservation form, the rental company may request and collect a cancellation fee not exceeding one day’s rental fee.

If the renter fails to collect the vehicle at the date and time specified in the reservation form without providing any justification, the vehicle may not be rented to another renter for at least twelve hours in the case of rentals lasting between one and six days, and for at least one day in the case of rentals lasting seven days or more. If the vehicle is rented to another renter before the expiry of these waiting periods, the rental and other service fees, together with the deposit, must be refunded in full within seven days following the date on which the vehicle is rented again. If the renter fails to collect the vehicle without providing any justification by the end of the applicable waiting period, the enterprise may cancel the reservation by deducting from the prepayment the amount or percentage specified in the rental agreement. Such deduction may not exceed one day’s rental fee for rentals lasting between one and six days, or three days’ rental fee for rentals lasting seven days or more. The remaining rental and other service fees, together with the deposit, must be refunded within seven days following the cancellation date.

Finally, where the prepaid reservation is made through an intermediary platform, the enterprise and the intermediary platform shall be jointly liable for preparing and transmitting the reservation form to the lessee.

4. Obligations Regarding Delivery and Return of Vehicles

Pursuant to Article 12 of the Regulation, the rented vehicle must be delivered by the enterprise to the lessee in accordance with the rental agreement. The relevant provision also sets out in detail the procedure to be followed where a vehicle in the segment specified in the reservation form is unavailable or not ready for renting at the scheduled date and time of delivery.

Upon delivery and return of the vehicle, also documents recording any existing damage and defects must be prepared, and a copy must be provided to the lessee physically or electronically.

Except in circumstances expressly specified in the rental agreement, the lessee may not be required to return the vehicle before the agreed date and time of return.

5. Regulations Regarding Rental Fees, Other Service Fees and Deposits

Pursuant to Article 13 of the Regulation, in addition to the rental fee, the enterprise may request and collect from the lessee service fees for other services, provided that such services are not contrary to the provisions of the Regulation and are specified in the rental agreement.

• Rental fees and other service fees shall be collected by the enterprise or intermediary platform by means of bank and credit cards, prepaid cards, bank transfer or electronic funds transfer, or through such other methods as may be determined by the Ministry.
• Different rental fees may be determined provided that the minimum kilometer limits prescribed under the Regulation are complied with. Where the applicable kilometer limit is exceeded, the enterprise may request and collect an additional service fee from the lessee in accordance with the relevant provision.
• Additional service fees may also be charged where the vehicle is collected from or returned to a different location or where an additional driver is added to the agreement, in accordance with the principles set out in the Regulation.
• The lessee and any additional driver designated in the agreement shall benefit from the vehicle's comprehensive insurance, the enterprise's protection coverage and compulsory financial liability insurance solely upon payment of the rental fee. Access to such coverage may not be made conditional upon any additional requirement or fee.
• In relation to the rental period, no amount other than the amount of toll charges, energy replenishment costs and the additional costs specified in the agreement and documented by the enterprise may be requested from or collected from the lessee.
• Upon the lessee's request, the electronic toll collection system shall be made available by the enterprise free of charge. If the electronic toll collection system is used during the rental period, the enterprise may request and collect the applicable toll charges from the lessee.
• No fee may be requested from or collected from the lessee for delays of up to one hour in returning the vehicle.
• The Ministry is authorized to determine upper limits for the service fees charged in consideration of services provided by enterprises.

Pursuant to Article 14 of the Regulation:

Depending on the vehicle class, the enterprise may collect a deposit from the lessee in an amount not exceeding three days' rental fee for rentals of six days or less and seven days' rental fee for rentals of seven to twenty-nine days or weekly rentals. Provided that the lessee's consent is obtained under the rental agreement and the lessee is informed prior to collection, the deposit may be used to cover unpaid or underpaid amounts of rental and other service fees; additional rental and other service fees arising from late return; excess-kilometer charges; motorway and bridge tolls relating to the rental period that emerge after the return of the vehicle; other charges arising from violations of applicable rules; energy replenishment costs; and damage or loss caused to the vehicle through the lessee's fault which is not covered by comprehensive insurance or the enterprise's protection coverage.

The enterprise may not obtain from the lessee, by way of deposit, a cheque, promissory note, letter of guarantee, suretyship undertaking or any similar document creating a debt obligation.

Procedures for refunding the deposit must be completed within seven days following the date on which the rental agreement is terminated and the vehicle is returned.

No deduction may be made from the deposit, and no amount may be requested from or collected from the lessee, in respect of defects or damage that could not have been readily identified upon delivery of the vehicle, such as scratches and dents, or ordinary wear and tear that fall within acceptable limits.

6. Provisions on the Damage Liability Regime

The Regulation introduces a detailed damage liability regime that strengthens the protection afforded to renters. Accordingly, any claim against a renter for damage or mechanical failure must be supported by a report issued by an authorized and independent expert establishing both the damage and its cost. Reports prepared by the enterprise’s personnel or by persons affiliated with the enterprise may not be relied upon as evidence. No amount may be claimed from a renter in respect of rentals for which vehicle delivery and return forms have not been issued, or for damage or mechanical failures not recorded in the vehicle return form. In the case of contactless returns, the renter may not be held liable for any damage occurring after the vehicle has been left in accordance with the rental agreement.

Nor may the renter be charged for repair costs, diminution in value, loss of rental income or similar amounts arising from damage or mechanical failures not attributable to the renter. Unless otherwise agreed between the parties, any claim against the renter for diminution in value must be based on an insurance arbitration award or another decision having the force of a court judgment. In addition, except in limited circumstances such as serious traffic violations, intentional damage, the vehicle being made available to unauthorized persons due to the renter’s fault, or its use for unlawful activities, enterprises must secure the damage-related financial liabilities of the renter and any additional driver.

To complement this regime, enterprises are also required to establish a continuously available and accessible online or telephone-based system through which renters can easily report damage and mechanical failures at any time.

7. Other Key Obligations of Enterprises

Pursuant to Article 17 of the Regulation:

• Vehicles cannot be rented to people who fail to present a valid driving license of the appropriate class for the type of vehicle to be rented.
• Where the reservation is cancelled by the lessee, procedures for refunding the rental and other service fees and the deposit, and, where a vehicle from a lower segment is delivered, all amounts relating to the difference in value, must be completed within seven days following the date of cancellation of the reservation or delivery of the vehicle.
• The provision of rental services may not be made conditional upon the purchase of any additional insurance, comprehensive insurance, damage protection or similar goods or services from the enterprise or third parties.
• Where periodic maintenance of the vehicle becomes necessary during the rental period, such maintenance shall be carried out by the enterprise, and the maintenance period shall be added to the rental period without any additional fee being charged.
• Winter tires shall be provided where required for traffic and lessee safety or due to seasonal conditions. Where requested by the lessee at least two days before delivery of the vehicle, an appropriate child restraint system satisfying the applicable standards of quality, specification and hygiene shall also be provided.
• Where the enterprise unilaterally terminates the rental agreement due to the occurrence of circumstances expressly specified in the agreement, the termination decision must be notified to the lessee without delay in writing or electronically.
• People who do not hold the requisite professional qualification certificate may not be employed as motor vehicle leasing officers or consultants.
• Enterprises cannot engage in unfair or unlawful commercial practices that diminish the lessee's ability to make a reasonably informed decision, materially distort the lessee's economic behavior, or cause the lessee to become a party to a commercial transaction to which the lessee would not ordinarily have agreed.
• Where it is clearly established that damage or defects are not attributable to the lessee and are of such a nature as to affect driving and vehicle safety or the lessee's physical safety, the enterprise must, upon notification by the lessee, allocate an equivalent replacement vehicle to the lessee as soon as reasonably practicable. Where this is not possible, the procedures for refunding the rental and other service fees and the deposit for the remaining rental period, including the day on which the damage or defect occurred, must be completed within seven days following the date on which the damage or defect occurred.

8. Obligations Imposed on Listing Platforms and Intermediary Platforms and Regulations Concerning Unfair Commercial Practices

Article 18 of the Regulation introduces various obligations also for listing platforms and intermediary platforms, including the following:

• Before establishing or renewing an enterprise's membership or registration, verifying the enterprise's authorization certificate through the Information System and not permitting enterprises without an authorization certificate to establish or maintain membership or registration;
• Ensuring that the enterprise's authorization certificate number and the enterprise name stated in the authorization certificate are displayed in listings, together with the full name and surname or the initials of the first name and surname(s) of the relevant person and the trade name of the relevant legal entity;
• Verifying through the Information System, before publication of a listing, that the enterprise has the authority to list each vehicle included in the relevant listing;
• Providing customer service channels through at least one internet-based communication method and by telephone through which requests and complaints relating to listings may be submitted, and ensuring that such requests and complaints are effectively managed and resolved;
• Taking measures to prevent listings that distort market conditions or mislead consumers;
• Enterprises must include, in their electronic listings, the vehicle's make, commercial name, class, type, model year and energy type, as well as information regarding its equipment, segment and mileage, together with detailed visual materials; refraining from including misleading information or documents; and, where a listing states that the vehicle will be delivered at an airport, railway station or bus terminal but the enterprise has neither a head office nor a branch at the relevant location, ensuring that this fact is clearly indicated in a readily visible part of the listing;
• Refraining from engaging in unfair commercial practices, examples of which are set out in Article 19 of the Regulation.

We would also like to highlight that unfair commercial practices frequently encountered in practice are now expressly prohibited and to outline the relevant provisions. Under Article 19(1) of the Regulation, practices of listing platforms and intermediary platforms that materially disrupt the commercial activities of the enterprises to which they provide services, impair their ability to make reasonable decisions, or compel them to make a particular decision and thereby become party to a commercial relationship that they would not otherwise enter into under normal circumstances are deemed unfair.

Article 19(2) of the Regulation provides a non-exhaustive list of practices deemed to constitute unfair commercial practices. These include: failing to provide the enterprise, in a timely and complete manner, with information submitted by the renter and required for the rental transaction; offering goods or services provided by the enterprise to the renter during the rental process, directly or indirectly through the same electronic environment, in return for a fee; presenting goods or services not provided by the enterprise as though they were, or in a manner creating that impression; using data obtained from enterprises and renters, other than for the provision and improvement of intermediary services, to compete with enterprises or, without their prior written or electronic consent, for marketing, advertising, communication, promotional or similar activities; failing to remit rental fees to the enterprise in full within five business days after such fees become available to the intermediary platform and the vehicle is delivered to the renter, except where the renter disputes the payment; compelling an enterprise to offer discounted goods or services or to procure goods or services from a particular person; failing to set out the terms of the commercial relationship in a clear, comprehensible and readily accessible intermediary services agreement; retrospectively amending that agreement to the enterprise’s detriment; charging the enterprise for services that have not been provided or whose type and applicable fee or rate are not specified in the agreement; imposing sanctions on an enterprise—such as lowering its ranking, restricting, suspending or terminating the services provided to it—without any objective criteria being set out in the agreement or because the enterprise has applied to a public authority or judicial body; restricting the enterprise’s commercial relationships, its ability to offer goods or services through alternative channels, or its advertising activities; charging the enterprise a service fee for rental transactions cancelled by the renter in accordance with the agreement; and including provisions in the intermediary services agreement that enable any of these practices.

As can be seen, with the obligations brought to listing platforms and intermediary platforms, the persons that rent are required to establish an operational framework under which the status of the relevant person or entity as an enterprise and the validity of its authorization certificate are regularly verified both before publication of a listing and throughout the membership period; the authority to list the relevant vehicle is verified through the Information System; and misleading or unauthorized listings are prevented through automated or manual mechanisms.

IV. Entry into Force

The Regulation will enter into force on 1 January 2027 and provides for a phased transition period:

• Enterprises operating as of 1 January 2027 must obtain an authorization certificate by 1 July 2027 in order to continue their activities.
• For existing enterprises that, as of the date of publication of the Regulation, were registered with the tax administration or a professional chamber or document their leasing activities and that continue to operate without interruption until the date of application, the age, education, bankruptcy and certain criminal conviction requirements set out under Article 6 of the Regulation will not apply to the relevant enterprise owners or representatives.
• Agreements established between enterprises and listing platforms or intermediary platforms prior to the entry into force of the Regulation must be brought into compliance with the Regulation by 1 July 2027.
• For existing enterprises, Article 6 of the Regulation, which sets out the minimum number of vehicles and the applicable vehicle age and mileage limits, and Article 15(2), which sets out the relevant safety standards, will not apply until 1 January 2028, provided that, as of the effective date of the Regulation, such enterprises are registered with the tax authorities or a professional chamber in respect of their motor vehicle rental activities, or can otherwise document that they engage in such activities, and continue their operations without interruption until the date of their authorization certificate application.
• The obligations of listing platforms and intermediary platforms relating to verification of authorization certificates and authority to publish listings will not apply until 1 January 2028. Enterprises that became members of or registered with listing platforms or intermediary platforms before the effective date of the Regulation must obtain an authorization certificate by 1 January 2028; otherwise, their memberships will be terminated or their registrations deleted.

The Ministry is authorized to extend the periods stipulated under the transitional provisions by up to one year.

V. Conclusion

In conclusion, the Regulation seeks to fundamentally transform the motor vehicle rental sector not only in terms of formal compliance requirements, but also with respect to business models, contractual structures and revenue arrangements. In particular, the authorization certificate regime, regulatory interventions in the content of rental agreements, restrictions on fees and deposits, and obligations imposed on digital platforms, when considered together, demonstrate a clear policy objective of steering the sector towards a more institutionalized, transparent and readily supervisable structure.

Upon the entry into force of the Regulation, it will be important for enterprises operating in the sector, as well as platforms providing intermediary and listing services, to review their existing business models and contractual arrangements and take the necessary steps to ensure compliance with the new regulatory framework within the transition period.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.