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Nottingham City Council is set to expand its City Car Club fleet from nine vehicles to 12 as part of an expansion plan.
The expansion plan also covers three new locations, which will be introduced at what the council calls key transport hubs.
The council will also give the option for users of its CityCard - a smart ticket, similar to London's Oyster card covering train, tram, bus and bike travel - to access the car club's vehicles.
In November 2014, the council was awarded £37,500 by the Department for Transport to help further develop the scheme.
Nottingham City Council claimed that 221 members have joined the project in the last year, with users travelling 43,000 miles in the last year.
According to the council, Nottingham has the lowest car ownership rate in the UK.
"We know that for many people a car is their preferred travel option. The City Car Club offers residents and businesses an option to use more sustainable cars in a flexible way to help reduce congestion and CO2 emissions," said councilor Nick McDonald, portfolio holder for growth, jobs and transport. "We have worked closely with our business community to offer free memberships and drive time credits during the first year of operation, so City Car Club cars can offer businesses an alternative to grey fleet and pool car usage."
The three new locations are:
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