Ferraro, who has been with the car rental company for 40 years, is succeeding Larry De Shon, who said in May that he would step down at year's end.
Shares of the Parsippany, N.J., company at last check were up nearly 1.4% to $32.84.
During five years as Americas president, Ferraro was responsible for the company’s Avis, Budget, Payless and Zipcar brands in North and South America, including Latin America and the Caribbean.
He was previously senior vice president of operations, North America, where he oversaw all Avis and Budget car and truck rental operations in the U.S. and Canada, including airport and local market locations.
Avis Budget Group has "a deep bench of talent," Chairman Leonard Coleman said in a statement. "[We] are confident that Joe and the rest of our management team will continue to provide steady leadership as we continue our search for a permanent CEO.”
Izzy Martins, chief financial officer for the Americas, will serve as interim president for that division. She has been with Avis for 15 years in senior strategic and financial roles, the company said.
De Shon, 60, has been with Avis for 13 years, including the past four years as CEO. He stayed with the company to to help with the transition.
Earlier this month, he was named to the board of Hartford Financial Services Group (HIG) - Get Report, which said he would serve on the audit committee and the finance, investment and risk management committee.