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Last edited May 2022 — 2 min read
If you run a car rental company, good invoice management is a sure way to improve cash flow. Invoices are also a key component of bookkeeping, ensuring you stay current with all tax regulations. In this guide, we’ll cover how to create a car rental invoice and include a free template.
Care hire invoices are used to collect payment for the use of leased vehicles, either through in-person companies or apps. There’s a variety of ways to calculate rates. Some car hire companies charge a flat rate per day, while others charge solely by mileage. Additional fees might include things like insurance and luxury car features. Many companies issue an invoice at the start of the rental period, while others will send it to the customer when the car is safely returned.
The specific car rental invoice format you choose will depend on the size of your company, the volume of transactions, and whether you serve multiple locations. A major car hire company like Avis might have more detailed invoices to designate the local pick-up and drop-off locations spread across the UK, for example.
However, all invoices will have some key features in common:
The top of the invoice shows the company name and address, customer name and address, and date of issue.
The body of the invoice shows the unique invoice number and full description of the services provided. This should include any relevant details related to the car hire, such as pick-up and drop-off points, fuel costs, and service charges. Most car rental invoice templates also include space to share the make and model of vehicle, the mileage used, and any other additional fees that should be included.
The subtotal and totals are then calculated using this breakdown of costs, appearing at the bottom of the invoice. VAT should be added if it applies to your company, as well as relevant information regarding payment methods.
Imagine that a customer hires a car for a period of two days, charged at a flat rate of £125 per day. They go over their inclusive mileage by 100 miles, charged at an additional rate of £2 per mile. The car rental invoice sample for this situation would look like the following:
Car Rental Company
Email address and website
INVOICE NUMBER: 00001
DATE OF ISSUE: DD/MM/YYYY