EASYRENTACAR, the car rental subsidiary of the EasyGroup, is planning to start its operation by Easter.
The start date depends on the company securing a contract with an undisclosed car manufacturer.
The company has had talks with manufacturers including Ford and Renault.
The low-cost car-rental company plans to secure a place in the market by changing the way people think about the service.
A spokesman said the low rates, starting from £9 a day, would be achieved through taking only on-line reservations, transparent pricing and less central locations for pick-up.
Transparent pricing will be one of the key selling features, according to the spokesman.
Fare quotes given at the time of booking are the fares the customer will pay, simplifying the process, thus changing the way the consumer looks at the car-rental market, said the spokesman.
However, with the low rates, mileage is not included in the quoted price.
The group aims to have a fleet of 2,000 cars based in the UK and abroad and hopes to double that number in the second year.
Initially, the service will be to limited to areas including Luton Airport, Scotland and Spain, at locations serviced by sister company EasyJet.
EasyRentaCar aims to expand the service as the market grows.