Car rental laws and regulations should be promulgated

Currently, a large number of people who cannot afford a car have chosen to rent a car when necessary. On March 10, 2010, Zuo yanan, board chairman of Anhui JAC Automobile Group Company Ltd. and a deputy to the National People's Congress suggested that car rental laws and regulations should be promulgated to guarantee the health development of the leasing market.

Zuo yanan expresses that with the auto industry’s development and growth, the car rental industry is from nonexistence to pass into existence, and is developing to expand, however, car rental-related laws and regulations have not introduced yet. In the legal relationship of car rental, the car rental company will bear a huge risk of leasing; a lessee may not pay the traffic tickets which will have to be paid by car rental company. Meanwhile, due to the high cost of renting a car by a lessee, Rental Company often establishes a harsh lease agreement, like the lessee must be local people and have to make an advance payment of high deposit. Besides, the existing relevant laws and regulations can not adjust the car rental legal relationship, which will have a bad effects on the lessor’s legitimate business or block a easy renting of vehicle by lessee.

Zuo yanan proposed that car rental laws and regulations should be promulgated and the range of responsibility of Car Rental Company for accidental rental vehicles should be stipulated. The lessor should have a right to take back the vehicle illegally mortgaged by lessee without any compensation, and should make a special mark on rental vehicle to avoid a mortgage of rental vehicle by lessee. Lessor should bear the responsibility to an accident caused by poor performance and safety of rental vehicle, and should ensure normal operation of all the vehicles and as well as assure the pre-delivery inspection. Meanwhile, the lessee should have a responsibility for rational utilization of vehicles, and should pay for violation fines of rental vehicle.