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Car rental Australia

Many travellers decide to rent a vehicle during their stay in Australia. Driving a car in Australia is pretty easy, and it’s the best way to discover the big cities and its surroundings. Many backpackers who are traveling for several weeks are also heading towards renting a campervan, allowing them to sleep in the vehicle. But others want a shorter rental or are simply looking for a smaller, more economical vehicle for a road trip. If you are planning a trip and want to rent a cheap car in Australia, there are many car rental companies across the country and prices can change depending on location, availability etc. To help you, here are some tips to save money and to find the right vehicle.

Car rental companies

Car rental agencies are spread all over Australia. They are usually located close to airports and city centres. However, it is harder to find an agency in small towns. For cheaper quotes, we suggest you go to a bigger city.

Most popular car rental companies:

rental companies

All these companies offer relatively similar services. The choice is therefore often made on the basis of price. This price will be influenced by the type of vehicle you want.

Requirements to rent a car in Australia

  • Be at least 19 (Generally it is required to be more than 21)
  • Must hold an open license
  • Have held your driver’s license for a minimum of 12 months
  • Hold your Australian or national + international driver’s licence (or an official translation). If you hold a drivers licence written in English, you are not required to have an international driver’s licence.
  • Have a credit card.

If you are under 25 you may incur a young driver surcharge and some car companies have a maximum age restriction of 75 years.

car rental Australia

How much does a car rental cost in Australia?

Prices differ depending on the agencies, the city you’re renting the car in, the type of vehicle etc. It starts from approximately $25/day in big cities and can rise up to $150/day according to the type of car you rent and the rental options you choose. Count approximately :

  • $30/ day for an Economy Car
  • $40/ day for a Medium Car
  • $45/ day for a SUV vehicle
  • $60/ day for a 5-door car
  • $80/ jour for a Sedan car
  • $85/ day for a 4WD or a station wagon
  • over $100/ day for a premium car

Renting a car is a lot more expensive in a small town than in a big city, because the competition is lower there and demand exceeds supply. As an example, renting a car in Byron Bay is much more expensive than in Brisbane.

How to rent a cheap car in Australia

There are three options available to you for your car rental:

  • Go directly to a rental agency (if you are already there)
  • Reserve a vehicle via the website of a rental company
  • Use an online comparator like Airport Rentals to get the best price

Car hire comparison

We recommend you to use a comparison website, so you can just relax while the search engine is doing the job. Then, you compare all available vehicles and choose the best offer.

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Other tips to get a cheap car rental in Australia

Here are some recommendations to get a good deal with your car rental:

  • Book well in advance
  • Avoid small towns
  • Avoid “one-way” rentals (learn more about “one way” rental below)
  • Prefer the agencies that are near the airports (prices in the city are often higher)
  • Rent a car for more than 3, 4 or 7 days. Daily rates usually decrease gradually.
  • If you are traveling in a group, you can share the cost of rental and other expenses such as petrol.
  • Compare the additional mileage costs. If the mileage costs are lower, a vehicle that is more expensive per day might eventually end up being cheaper in total.

Criteria that make the rental price vary

Additional costs

A lot of companies charge additional fees when the driver is less than 21 years old. The rental agency can also add costs for car equipment such as GPS, car seats etc.


Kilometers are not always unlimited. There are indeed 2 options when you rent a car:

  • Unlimited mileage. In this case, the price remains the same, whether you drive 100kms or 500kms.
  • Restricted mileage allowance. You are not allowed to drive more than a certain number of kilometers. Any additional kilometer will be charged consequently. They usually charge around 0,25 cents/0,30 cents per additional driven kilometer. The costs depend on the car rental company you choose.

Cancellation fees

If you cancel your rental, the company will keep the deposit you made during your booking process. Sometimes the company also charges an additional penalty if you don’t pick up the car you booked.


A deposit is required for any rental. The cost of the deposit depends on the type of car you rent as well as the driver’s age. It is taken out of your credit card and you get a refund when you return the vehicle.


You can choose to get insurance in order to have all the damages made to your vehicle or anyone else’s vehicle covered. Without this insurance, you will have to leave a deposit (“excess” or “bond”). The amount of this deposit corresponds to your percentage excess (maximum liability). The costs of insurance depend on the rental company and on the type of vehicle you rent (generally $20-30/day). Some companies offer cheap insurance but with an excess. Make sure you have a look at the extent in your rental contract.

Sometimes your credit card or your travel insurance cover the excess for a car rental overseas. Don’t forget to have a look at your contract and check if you’re covered. Please note that even if you have this kind of insurance, you will still have to pay the deposit to the rental agency. Your private insurance will refund your repair costs but won’t pay the deposit for you!

In many cases, breakdown assistance is included in your car rental contract, with no additional fees.

One way rental

You can rent a car in a city and return it in another city. So you can rent a car in Sydney and return it in Brisbane. Hence, you need to return your vehicle in the agency indicated in your contract. The one-way fee will depend on several criteria, and specifically on the location, you want to return your vehicle. We recommend comparing the drop-off prices with different cities before choosing where to end your trip. It might actually be cheaper to drive an extra hour to return your car in another city.

Best cities to rent a car in Australia

If you want to hire a budget car in Australia, your best bet is to go to either Sydney, Melbourne, Perth, or Brisbane. It is cheaper in big cities because there are numerous rental companies competing for customers. If you want an even better deal, go to car rental companies in proximity to the airport. They can usually afford to make you a better offer because they don’t have to pay high rents for offices in the CBD or inside the airport.

Tips when renting a car in Australia

  • Make sure you carefully examine your car before you leave
  • Take photos!
  • If you’re planning on driving in the big cities, research how you can pay the tolls
  • Double-check that the vehicle corresponds to the model you booked. It can happen that the model you booked is no longer available. In this case, you get a different model. If this happens, you should be upgraded.

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