small vehicles, mighty market
The global golf cart market, valued at $2.19 billion in 2024, is projected to grow at a 4.8% CAGR, reaching $3.51 billion by 2034, driven by expanding use in residential, resort and business settings alongside traditional golf courses.
How much does it cost to start a golf cart rental business?
The most obvious upfront expense when starting a golf cart rental business is purchasing the vehicles. A typical fleet of 10-20 carts can cost between $50,000 and $200,000 USD, depending on the vehicle’s year, manufacturer and model.
0% financing or low-interest rates may be available for new carts purchased from a dealership. Alternatively, buying used carts can reduce costs, but it’s important to research the vehicle’s previous use and maintenance history.
When choosing between gas and electric carts, the pros and cons are similar to traditional vehicles. Electric carts typically have a higher upfront cost but lower maintenance expenses over time and fewer replacement parts to keep in stock. A mixed fleet of both types can be a good balance, though servicing both vehicle types may add operational complexity.
The good news is that with consistent demand, the initial investment in your golf cart fleet could be recouped within the first few months, especially during peak tourist seasons.
Here are a few other considerations for startup costs:
- Rental Vehicles: As of 2025, the typical manufacturer suggested retail price (MSRP) of a new golf cart is between $6,000 to $14,000 USD. Yamaha Golf-Car Company, Club Car, ICON and E-Z-GO and are among the leading manufacturers.
- Logistics Vehicles: Budget to purchase or lease at least one flatbed truck or trailer to transport carts between pick-up/drop-off zones and your HQ.
- IoT Devices: IoT devices transform traditional golf carts into “smart” vehicles, adding additional functionality like keyless start, GPS tracking, and app-based connectivity. With these devices, operators can enable automated rentals and manage fleets remotely. IoT devices can be retrofitted into existing carts, making them compatible with platforms like Revii. These devices typically cost between $350-$500 USD each and include an annual software subscription fee.
- Insurance: General Liability and Commercial Auto are the most common insurance requirements for this type of business–though your country or state may require additional coverage such as guest passenger liability or equipment coverage.
- General Maintenance: Both electric and gas carts require routine servicing like tire replacements, brake maintenance, and suspension inspections. Planning for unexpected repairs and high-usage or weather-related wear is essential to avoid costly breakdowns.
- Electric Carts: Depending on usage and the type of battery (e.g., lead-acid vs. lithium), cart batteries may need to be replaced every 2-5 years. Electricity costs will also be a consideration, particularly if you don’t require customers to charge the vehicles before returning them.
- Gas Carts: Like any gas-powered vehicle, carts require regular oil changes, air filter replacements, spark plug maintenance and engine checks. Gasoline prices will fluctuate based on market conditions, and if you provide fuel for the carts, you will need to account for these costs in your pricing structure.
Is a golf cart rental business profitable?
One of the most compelling reasons to start a golf cart rental business is the high earning potential, particularly in dry and tropical climates where demand from tourists and seasonal residents remains relatively consistent.
That’s not to say golf cart rental businesses can’t thrive in temperate climates. Even with fluctuating demand and a shorter operating window (e.g. April to October), these businesses can still be highly lucrative. Success in these regions, however, hinges on careful planning to manage cash flow during the off-season.
This means location is one of the most critical cost considerations for your golf cart rental business. Selecting the right market with strong demand and favorable regulatory conditions can significantly impact profit potential.
How much revenue does a golf cart rental business generate?
Let’s assume you invest in a fleet of 10 golf carts for an average purchase price of $8,000 USD per vehicle, totalling $80,000. How long will it take you to earn back the cost of your fleet?
Golf cart rental rates to consumers typically range from $100 to $200 per day, depending on factors like:
- Cart Features: Premium finishes, seating capacity (2, 4, or 6 seats)
- Additional Services: Delivery and pickup fee, setup for events
- Ancillary Fees: Refuel/recharge fee, cleaning fee, renter’s collision protection, refundable damage deposit, lost items fee (charging cord, key, DMV tag replacement)
With 10 carts, each rented for just 10 days a month at an average rate of $150/day, you could generate $15,000 in gross monthly revenue. Scale this up to a year, and you’re looking at $180,000 annually.
This is just the base income—ancillary fees and added services will further boost your earnings. Consider diversifying by selling snacks and beverages at pick up zones, or renting extra items like coolers, bluetooth speakers and beach toys, which can generate an additional $10–$50 per day.
Another potential revenue stream is selling advertising space on your carts to local businesses. Forming B2B partnerships with hotels or event venues to offer bundled rental packages can also provide a consistent flow of customers.
Finally, by offering multi-day or weekly packages at discounted rates, you can encourage longer rentals, which not only increases revenue but also reduces the effort required for cart turnover. Typical rates for 7-day rentals range between $750 to $1,000 USD.
Here’s another example of a startup golf cart rental fleet which takes seasonality into consideration:
- Fleet Size: 10 carts
- Daily Rate: $150
- Utilization Rate: 80% (8 out of 10 carts rented daily)
- Season Length: 180 days (6 months)
- Gross Revenue: $150 × 8 carts × 180 days = $216,000
cart smarts
Before launching your golf cart rental business, verify local regulations for low-speed vehicles. To be street-legal, most jurisdictions require LSVs to have safety features like seat belts, headlights, taillights, turn signals, mirrors and a windshield. They must also meet specific speed limits (typically 20-25 mph) and may need to be registered and insured.
Profit margins of a golf cart rental business
Profit margins in a golf cart rental business typically range from 20-30% of revenue, but this can vary depending on the size of your operation and how well you manage costs like insurance, storage, employee wages and marketing. To maximize profitability, it’s essential to focus on two main factors: location and operational efficiency.
That’s where an automated rental platform like Joyride-powered Revii comes in. With core features like keyless unlocking for off-site vehicle rentals, app-based digital payments to cut down admin work, and up-to-the-minute GPS to keep track of assets, your showroom and rental kiosk can be anywhere.
Plus, the flexibility to move carts between high-demand locations throughout the year—like coastal areas in the summer and inland spots in the winter—keeps your fleet busy and generating revenue year-round.
Want to see how it works? Learn more about Revii here.
Or better yet, let’s connect and discuss how Joyride’s smart vehicle technology can take your golf cart rental business idea to the next level.
