Budget car rental was founded in 1958 by Morris Mirkin who eventually took on a partner, Julius Lederer. It was known at that time as System, Inc. and was very innovative for the times because they undercut the other car rental agencies prices by lowering the daily rates and per mile rental charges. They started with ten cars and have grown to over nineteen hundred.
The Budget car rental company has its corporate headquarters in New Jersey. Budget was acquired by Cendant Corporation in 2002. This corporation also owns Avis car rental. The name has been changed to represent both car rental companies; it is called Avis Budget Group. Budget is continuing to be an innovator in the car rental venue by introducing a Smart Fortwo rental car.