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How To Write a Car Rental Invoice

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Last editedMay 20222 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. 

When should you send a car hire invoice?

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.

What is the car rental invoice format?

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.

Car rental invoice sample

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 

Mailing address

Email address and website

Phone number


Customer name

Customer address







Car Rental (2020 Astra Manual)




Extra Mileage




Additional service charge

























E.g. Net 30 payment terms, follow link for payment

This simplistic sample shows you what a very basic car rental invoice would look like in reality.

How to use a car hire invoice template

If you’re looking for a free car hire invoice template, follow the link to access a basic outline. Once you’ve downloaded our template, you can fill it in with all the details for your invoice. Here are a few tips to make your template use more successful.

  1. Customise the template with your own company logo, professional fonts, and brand styling.

  2. Be sure to mark the invoice clearly with a title and unique invoice number. This is essential for your tax records. Most businesses use a sequential system, adding in letter codes for repeat customers.

  3. Use your company address as it’s registered with HMRC. If you have a limited company, you need to list all director names on the invoice.

  4. Be as descriptive as possible when listing the services provided. You want to avoid any confusion on the customer’s end. The invoice should clearly, accurately state what they have paid for.

  5. Don’t forget to add your payment terms. If you expect to be paid within 15 or 30 days, this must be clearly stated on the invoice to avoid confusion.

Regarding payment, it’s also best to offer the customer an array of methods to choose from. Many customers prefer to pay online or via bank transfer, which embedded links can help facilitate for a one-click payment. GoCardless can make it easier to collect your car rental invoice payments using direct debit. This pull-based system puts your business in control of collecting payments directly from the customer’s bank account, minimising costly delays. It’s fast, secure, and convenient for both parties.

We can help

GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.

Over 85,000 businesses use GoCardless to get paid on time. Learn more about how you can improve payment processing at your business today.

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Interested in automating the way you get paid? GoCardless can help
Interested in automating the way you get paid? GoCardless can help

Interested in automating the way you get paid? GoCardless can help

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