What exactly has happened? On 24 October 2025, Starcar (officially Star Car GmbH Kraftfahrzeugvermietung) applied for insolvency proceedings.
- The local court in Hamburg (Amtsgericht Hamburg) opened preliminary insolvency proceedings (vorläufiges Insolvenzverfahren).
- Attorney Christoph Morgen was appointed as the provisional insolvency administrator.
- Starcar confirmed that operations will continue at all locations, and that customers can still rent vehicles.
- The company stated that insolvency‐advance payments (Insolvenzgeldvorfinanzierung) were initiated to cover employees’ wages and salaries.
A German news outlet summarised:
“Despite the insolvency, the business is continuing at all branches.”
2. Who is Starcar – company background & scale
Starcar is a German car-rental provider, with a long history and many locations across Germany. Key facts:
- Founded in Hamburg (1987) and grew into what is described as one of Germany’s larger rental companies.
- The company operates more than 100 direct rental stations in Germany plus hundreds of partner stations.
- In the previous year the company claimed revenue of approximately €510.65 million (up from around €341.73 million in 2022) though debt and financing pressures mounted.
- As of filing, about 615 full-time employees were directly employed; including part‐time the number reached up to about 1,100 across all sites.
This context shows that Starcar was not a small operator, but a fairly significant player in the German mobility & rental industry.
3. Why did the insolvency happen? – Key causes & contributing factors
Despite strong revenue figures, several structural and financial issues seem to have come together to push Starcar into insolvency:
a) High financial leverage and debt burden
According to reports, Starcar had taken on roughly €240 million in loans in 2022, with maturities and refinancing needs that became critical.
b) Rising costs and shrinking margins
Even though rental demand may have remained solid, key cost factors squeezed margins:
- Fleet procurement/financing costs increased.
- Maintenance, insurance and repair costs rose.
- Higher interest rates in recent months made debt servicing more expensive.
c) Liquidity stress and refinancing failure
While Starcar attempted to negotiate extensions with its lenders, those talks reportedly collapsed. Liquidity tightened over summer 2025, making the insolvency filing inevitable.
d) Business model exposure
Rental companies operate with high fixed‐cost fleets and thin margins. When external shocks (higher rates, cost inflation, used-vehicle value drops) hit, vulnerability rises. Starcar’s case is a clear example. Industry commentary calls it “one of Germany’s largest car rental providers” to fall into insolvency.
4. What does the insolvency mean for various stakeholders?
a) Customers
- Good news: Starcar announced that the business continues and customers can still rent vehicles at in-place locations.
- What to watch: While everyday operations continue, some things might change — fleet availability may shrink, partner station terms may shift, and rentals might carry revised conditions.
- If you have a booking: Keep documentation, check any new terms, and confirm the station is still officially operating under the Starcar name.
b) Employees
- Starcar initiated advance insolvency payments (Insolvenzgeldvorfinanzierung) so that wages and salaries are protected for the period of the insolvency.
- The provisional administrator has emphasised preserving jobs as priority.
- However, job security is not fully guaranteed — successful restructuring will depend on finding investment or a buyer.
c) Suppliers, lessors and creditors
- These parties may face delayed payments or need to file claims in the insolvency proceedings.
- Those with leasing or fleet contracts should check terms regarding insolvency, repossession rights, and ongoing obligations.
d) The mobility market & competitors
- The insolvency of a large player like Starcar is a signal for the broader rental-mobility sector: cost pressures are high, financing risk is material.
- Competitors may gain market share, but also face similar structural risks.
5. The next steps & possible outcomes
Restructuring vs liquidation
The primary aim under the insolvency proceedings is to stabilise operations, preserve value, and, if possible, restructure the business rather than liquidate. The provisional administrator has flagged this as the goal. meinbavaria.de
Possible scenarios:
- A strategic investor or partner acquires Starcar’s operable business, enabling continuation under new ownership.
- A restructuring plan is agreed with creditors, with debt reduction and new capital injection.
- If no viable rescue is found, a full liquidation might follow — assets sold, leases terminated, branches closed.
What to monitor
- Public announcements from the provisional administrator or court regarding the restructuring plan.
- Changes in Starcar’s fleet size, number of branches, or partner network.
- Updates on employees (job losses, branch closures).
- Impact on bookings and customer communications (will they honour pre‐bookings, warranties etc).
6. What should you do if you are affected?
If you’re a customer with a booking
- Confirm with your local Starcar branch that your rental will proceed.
- Check the terms: make sure you know what happens if the branch closes or the company changes.
- Keep all documentation: booking confirmation, rental agreement, communications from Starcar.
If you’re an employee or supplier
- For employees: ensure your HR department confirms that your wages are covered via insolvency-advance payments.
- For suppliers/lessors: engage with the provisional administrator early; file your claims according to instructions from the insolvency office.
For general stakeholders and partners
- Review contract terms around insolvency/termination rights.
- Assess exposure: if you rely heavily on Starcar (as partner station, affiliate, lessor) consider mitigation strategies (diversifying, revising terms).
- Monitor communications: often in restructuring situations, rapid changes happen (branch closures, asset sales).
7. What lessons can the industry draw?
The Starcar case surfaces several lessons for rental and mobility companies—and for stakeholders:
- Financial structure matters: heavy reliance on debt and tight margins is risky in times of cost escalation & interest-rate pressure.
- Fleet cost control and flexibility: the ability to scale fleet up or down, manage used-vehicle value, and control maintenance are key.
- Diversification: offering more than short-term rentals (e.g., long-term subscriptions, used-car sales) helps cushion shocks. Starcar itself had diversified to some degree. starcar.de+1
- Transparency & communication: when trouble looms, proactive communication with stakeholders (employees, customers, creditors) helps preserve trust.
- Resilience planning: in the mobility ecosystem, external pressures (inflation, regulation, asset costs) are rising; companies must build resilience.
8. FAQs about the insolvency process
Q1. Does Starcar’s insolvency mean I cannot rent from them anymore?
A1. No — the company has announced that its operations continue across all stations for now. However, availability and terms may change, so checking locally is wise.
Q2. If I have to cancel a booking, can I claim a refund?
A2. That depends on the rental agreement and local law. If Starcar cancels on its own initiative due to insolvency, you should check for refund rights or alternative arrangements. Documentation is key.
Q3. Are my personal data and loyalty points safe?
A3. Generally yes, but in insolvency situations data may be transferred or systems changed. Keep your own records and check continuity of programs.
Q4. As an employee, am I still paid?
A4. The insolvency advance payments (Insolvenzgeld) are intended to cover wages for a specified period. But longer‐term employment depends on restructuring outcome.
Q5. For suppliers/lessors: how do I file a claim?
A5. The insolvency administrator will publish instructions through the court register. Monitor the official insolvency notices, gather your invoices/claims, and submit within the deadlines.
9. Summary & Outlook
The insolvency of Starcar marks a significant event in Germany’s mobility and rental industry. Despite healthy turnover, the company was exposed to structural cost pressures, debt burdens, and liquidity stress — and ultimately filed for preliminary insolvency proceedings in late October 2025.
For customers and employees, the immediate message is that operations continue, but caution remains warranted. The ultimate fate of the firm depends on whether restructuring succeeds or liquidation follows.
From an industry perspective, this serves as a cautionary tale about the fragility of mobility business models under cost inflation and financing risks. Stakeholders must stay alert, contractually protected, and diversified.