Private car rental is legal, personal car rental does not belong to the passenger's transportation behavior, and the personal car rental service contract does not apply to the provisions of the Regulations of the People's Republic of China on Road Transportation. The car rental model can sign a legal civil lease contract through the intermediary platform.
Article 49 of Chapter VI of the Tort Liability Law of People's Republic of China (PRC) stipulates:
The owner and user of the motor vehicle are not the same person due to reasons such as leasing or borrowing. And it is the responsibility of a motor vehicle after a traffic accident, the insurance company shall make compensation within the liability limit of motor vehicle compulsory insurance. For the insufficient part, the motor vehicle user shall be liable for compensation; If the owner of a motor vehicle is at fault for the damage, he shall bear the corresponding liability for compensation.
Extended data
It is legal for private individuals to rent cars to car rental companies through leasing. It is no problem to be affiliated with the leasing company, because the leasing company is a formal company registered in the industrial and commercial department and has a formal business license, but it is not a taxi driver. However, it should be pointed out that the leasing company also has regulations that only vehicles with less than 12 seats can be leased, but not more than 12 seats. So not all cars can be rented to car rental companies at will.
In addition, private individuals rent their idle cars to private individuals. If there is no driver, it is not within the jurisdiction of the transportation department, because the private person only rents the car to others as an item, and the transportation bureau cannot manage the items rented by others. So this private car rental is ok. However, private leasing to private individuals or relevant departments such as the industrial and commercial bureau will hold different opinions. After all, this involves business qualifications and tax issues.
After signing a civil lease contract with the owner of a private car, the car rental company will lease the owner's private car to a third party and sign a corresponding contract with the third party. At the same time, the third party will be required to purchase insurance during the use period. If there is danger, it will be handled by the car rental company and the third party, and the owner does not need to come forward.
It is understood that idle private cars can only be rented to leasing companies after many audits, requiring vehicles to be new cars within two years, and all vehicles need to be equipped with GPS positioning systems. In addition, not all idle private cars can be rented to rental companies, and they will send people to visit and evaluate the vehicles before signing civil contracts with the owners.
As for how individuals pay taxes after renting idle vehicles to rental companies, the relevant personnel of the rental company said that this fee was paid by their company, and no owner himself paid it.