Legal analysis: car rental refers to the separation of the right to use the assets of the car from the ownership. The lessor has the ownership of the assets and the lessee has the right to use the assets. The lessor and the lessee sign a lease contract in exchange for the right to use the assets.

Legal basis: Civil Code of People's Republic of China (PRC).

Article 707 Where the lease term is more than six months, it shall be in written form. Article 707 Where the parties fail to confirm in writing that the lease term exceeds six months, they shall do so in writing. If the parties fail to determine the lease term in writing, it shall be regarded as an indefinite lease. If the lease term is fixed, it shall be regarded as an indefinite lease.

Article 710 Where the lessee uses the lease item in accordance with the agreed method or the nature of the lease item, thereby causing losses to the lease item, it shall not be liable for compensation.

Article 715 The lessee may, with the consent of the lessor, improve or add the lease item. If the lessee improves or adds other things to the lease item without the consent of the lessor, the lessor may require the lessee to restore the original state or compensate for the losses.