Turkey’s Ministry of Commerce has unveiled draft regulations aimed at overhauling the country’s car rental sector, seeking to enhance service quality, prevent illicit practices, and protect consumer rights. The proposed “Regulation on the Rental of Motor Vehicles” introduces comprehensive standards for businesses and vehicles, signaling a significant shift towards a more formalized and regulated market.
The move comes as the Turkish government prioritizes maintaining a fair, competitive, and stable automotive market, and maximizing consumer satisfaction, according to information obtained from the Ministry. The car rental sector is considered strategically important to the Turkish economy, and the new regulations are intended to address issues of quality, transparency, and consumer protection.
The draft regulation mandates that all businesses engaged in commercial vehicle rental obtain an authorization certificate. To qualify, businesses must be registered with a professional chamber, operate from a dedicated business address – not a residential one – and be registered as taxpayers. Rental managers will also be subject to qualification requirements, including a minimum of primary school education, a clean criminal record, and certification at “Level 4” as approved by the Vocational Qualification Authority.
Central to the new framework is the establishment of a “Motor Vehicle Rental Information System” managed by the Ministry. This system will track and monitor all rental activities and vehicles, with authorization applications and other certification processes conducted through the platform. The system aims to provide greater oversight and accountability within the industry.
Promoting Eco-Friendly Transportation
The regulations also prioritize consumer safety and service quality by setting qualitative limits on rental vehicles, including age, mileage, and environmental standards. Vehicles over five years old or with more than 100,000 kilometers will generally be prohibited from rental fleets, with classic cars being the exception. Businesses will be required to maintain a fleet of at least 10 vehicles, with a minimum of five owned outright.
In a move to encourage environmentally conscious transportation and support domestic manufacturing, businesses operating in metropolitan areas will be required to include at least two hybrid or electric vehicles in their fleet, with at least one of those vehicles being manufactured in Turkey. This requirement aims to incentivize the adoption of greener vehicles and bolster the local automotive industry.
Addressing Deposit Concerns and Consumer Rights
A key focus of the draft regulation is addressing consumer grievances related to deposit practices. The maximum deposit amount will be capped at three days’ rental cost for rentals of 1-6 days, and seven days’ rental cost for rentals of 7-30 days or weekly rentals. The circumstances under which deductions can be made from the deposit will be clearly defined within the regulation. The regulations mandate that deposits be returned within seven days of the vehicle’s return.
Consumers will also be granted the right to cancel pre-paid reservations without penalty up to 24 hours before the scheduled pick-up time. The regulation also stipulates that businesses cannot charge consumers for normal wear and tear on vehicles, and any deductions from the deposit must be justified.
Vehicle Maintenance and Insurance Standards
The draft regulation also addresses vehicle maintenance and insurance requirements. Vehicles with overdue maintenance will not be permitted for rental. Kasko (comprehensive) and insurance coverage must be included in the rental price, without any additional fees or conditions for the renter. Rental companies will be obligated to provide accessible communication channels for renters to report damages or malfunctions, and to maintain a readily available notification infrastructure.
The regulation seeks to curb arbitrary charges by prohibiting rental companies from claiming “depreciation” fees from renters without a court order, except in cases mutually agreed upon by both parties. Businesses will also be required to provide baby seats, navigation systems, and highway toll passes (HGS) free of charge upon request.
Online Platform Oversight and Transition Period
Online platforms and listing sites will be responsible for verifying that rental businesses advertising on their sites possess the necessary authorization certificates. Businesses without valid certificates will be prohibited from listing vehicles for rent on these platforms. To facilitate a smooth transition, existing businesses will have until , to obtain the required authorization certificates.
These proposed regulations represent a significant step towards a more structured and consumer-friendly car rental market in Turkey. The emphasis on transparency, standardization, and accountability aims to foster a more competitive and reliable environment for both businesses and renters, while also promoting sustainable transportation practices.
