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Design Car Rental System

Medium Prioritymedium39 min readUpdated June 27, 2026
Practice this Problem

In this chapter, we will explore the low-level design of a car rental system in detail.

Let's start by clarifying the requirements:

1. Clarifying Requirements

Before starting any design, it's important to ask thoughtful questions to uncover hidden assumptions, clarify ambiguities, and define the system's scope.

Here is an example of how a discussion between the candidate and the interviewer might unfold:

After gathering the details, we can summarize the key system requirements.

Functional Requirements
  • Support multiple rental locations where vehicles are stored and managed
  • Support different vehicle types (Economy, Compact, SUV, Luxury, Van) with distinct daily rates
  • Allow customers to make reservations by vehicle type, pickup location, and date range
  • Support different pickup and return locations (one-way rentals)
  • Assign a specific vehicle at pickup time based on availability at the location
  • Track vehicle status through its lifecycle: Available, Reserved, Rented, Under Maintenance
  • Support add-on equipment (GPS, Child Seat, Insurance) with daily rates
  • Calculate rental cost based on duration, vehicle type, equipment, and pricing strategy
  • Support configurable pricing strategies (standard, weekend)
  • Handle late returns with additional fees
  • Notify observers when reservations are created, vehicles picked up, and vehicles returned

Non-Functional Requirements
  • The design should follow object-oriented principles with clear separation of concerns
  • The system should handle concurrent reservation requests without double-booking
  • The system should be modular and extensible to support future enhancements
  • The code should be thread-safe for concurrent access
  • The components should be testable in isolation

2. Identifying Core Entities

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