The rental car industry has seen a lot of changes over the years. One company that has been around since the beginning and been through many changes is Budget Rent A Car. As the name suggests, Budget's marketing over the years has been aimed at consumers who want to save money on a rental car. Budget Rent A Car has gone through its ups and downs but has maintained a good reputation in the rental industry. Here is a brief history of the company.



Morris Mirkin established Budget car rental in 1958 in Los Angeles, California. He started the business with an initial investment of only $10,000 and a fleet of only 10 vehicles. The only employees at the beginning were him and his wife. Rental rates were low at only four dollars per day and four cents a mile. These low rates attracted customers and supported the company's marketing campaign.

Due to the company's success but limited funds, Mirkin partnered with his relative, Jules Lederer in 1959. Lederer invested money to help the company grow and to create a leasing company. This enabled the company to establish itself and increase its car fleet. Just two years after starting Budget, Mirkin and Lederer formed Budget Rent A Car Corporation in Chicago, Illinois and the company started its rapid expansion. Budget quickly grew both nationally and internationally.

During the 60s and 70s, Budget kept focused on budget minded customers and the company grew rapidly in the leisure market; about 20 percent each year in these first two decades. It was during this time that Budget also moved most of its operation to the airport - a move that most rental companies were making to cater to the preference of customers. The marketing focus also grew to include smaller businesses and medium size corporate accounts.

As with many rental car companies, the 1980s were a difficult time and there was much restructuring in the industry. In 1986 the tax credit law was repealed for car rental companies; no longer could they be exempt on taxes for new car purchases. This signaled a restructuring of the company's management and also in 1986 the company was involved in a buyout.

During the 80s and 90s the company saw many ups and downs with changes in ownership and new acquisitions. Everything seemed to be going alright until 2002 when Budget Group Inc (the name since 1997) hit hard times and was de-listed. Its assets were sold and Budget was incorporated into the Avis Budget Group.

The Budget name and corporate identity is still maintained even with its turbulent past. Mirkin's vision has withstood growing pains and remains a big part of the rental industry.