If you’re planning on exploring the stunning landscapes of Australia anytime soon, you’re in for an exciting journey. And probably, the most essential component to consider for your trip is your mode of transport.

As opposed to adjusting your itinerary to the public transport system, renting a car provides convenience and freedom, which perfectly complements your Australian adventure. In this article, we’ll run through a comprehensive guide that sheds light on car rental costs in Australia to help you budget and plan accordingly. 

But first, let’s quickly dive into why you should opt for a rental car for your Australian adventure.

Why Rent a Car in Australia?

Convenience Factors

Travelling through Australia offers incredibly diverse experiences. From bustling cities, charming coastal towns, and lush rainforests to the breathtaking outback, the continent has something for everyone. While public transportation can get you to popular tourist destinations, it may not be as efficient as driving yourself, especially if you’re short on time.

Renting a car allows you to control your travel itinerary entirely, reaching hidden gems and off-the-beaten-path spots without the hassle of coordinating with bus or train schedules. Australian cities and highways are often well-signposted, making road trips a breeze. Plus, with countless scenic coastal routes and highways, an Australian road trip becomes an experience in itself.

Freedom of Travel

Renting a car in Australia offers a sense of freedom that public transport simply can’t match. It allows you to set your own pace, tailoring your travel plans to suit you. No need to wait for buses or trains, plan your vacation around someone else’s timetable, or miss out on a spontaneous side trip to a local attraction—the independence and flexibility of having your car make for a richer, fuller travel experience.

That said, we can now jump into familiarising ourselves with the costs associated with your Australian vehicle hire.

What Factors Influence the Cost of Car Rental?

Understanding what influences car rental costs can help you find the best deal. And to give you a heads-up, there’s no one-size-fits-all answer, as several variables come into play:

Type of Car

The cost fluctuates based on the car type. Smaller, economy cars are generally cheaper than larger or luxury vehicles. Also, models with better fuel efficiency can save fuel expenses during your trip.

Rental Duration

The period you’ll be renting the car also influences the cost. Typically, the longer the rental period, the lower the per-day price. Some companies may even offer discounted rates for weekly or monthly rentals, providing further savings if you require a vehicle for an extended period.

Insurance Costs

Rental companies provide basic insurance that’s included in the quoted cost. However, you would need to shell out additional charges for a higher level of cover. It’s essential to weigh your options before committing to an insurance plan. Remember that you can also obtain insurance coverage from third-party companies, sometimes resulting in cost savings.

Any Other Additional Costs

Other costs, such as fuel, tolls, and underage driver fees, may also affect the final amount. Do your research beforehand, so you know what to expect and can budget accordingly. Many rental companies offer different add-ons, like GPS devices or car seats, which are available for an additional fee. Be sure to factor these costs in when setting your budget.

Average Cost of Renting a Car in Australia

Now comes the big question: how much does a rental car cost per day?

Daily Car Rental Costs

On average, you can expect to spend between $20 to $120 per day on a rental car in Australia. Again, this depends on location, type of car, and time of year.

Cost of a 5-Day Car Rental

For a 5-day rental, the average cost (considering a lower-end vehicle) could range between $100 to $200 for that period. However, the price could go up to $400-$500 if you opt for a luxury vehicle or an SUV.

Cost of a 2-Week Car Rental

With a more extended rental period, the per-day cost is usually lower. You might be expected to pay between $250-$350 for a two-week rental with an economy car. The price will accordingly rise if you choose a more expensive vehicle type or additional services. Luxury cars, SUVs, and off-road vehicles can set you back $800-$1,200 for a two-week rental.

Factors Affecting These Costs

Remember that prices can fluctuate depending on the time of the year. Peak periods, such as Australia’s summer holidays (December to February) or school breaks, may result in an increased demand for rental cars and, thus, generate higher prices. If your travel dates are flexible, consider visiting during off-peak periods where car rental rates may be lower.

How to Save Money on Car Rental in Australia

Even with this idea of car rental costs, looking for more ways to save is always a good practice. For instance:

Booking in Advance

Like many other travel and accommodation services, early bookings can give you a significant price advantage. Reserving a rental car a few months ahead of your trip usually results in better rates compared to booking closer to your travel date. Early bookings also offer broader choices in terms of car type and availability.

Off-Peak Periods

Prices often spike during Australia’s high travel season. If your travel dates are flexible, consider visiting in the off-peak periods, such as late autumn (May to June) or early spring (September to October). Not only will your rental car be cheaper, but you’ll also likely encounter fewer crowds and more affordable accommodation options.

Package Deals

Check if any companies offer package deals that bundle in car rentals with other services, such as flights, hotels, or guided tours. These deals can provide added value, allowing you to save on the overall cost of your vacation. Be sure to shop around, as various companies may provide different packages or promotions that suit your needs.

Take Advantage of Promos and Specials

Some car rental companies offer limited or seasonal offers where you can shave off a lump from the final rental prices. If you’re booking online, check out their website to see if they offer car hire discount codes or promotions for specific dates or car models. 

Compare Companies

Spend some time researching different car rental companies to find the best deal. Online comparison tools and customer reviews can provide valuable insights into which companies offer the most competitive rates and reliable service.

Ready to Go Out and Explore?

Discovering Australia in a rental car can add more fun and freedom to your journey. The car rental cost in Australia varies on several factors, but this guide makes them easy to understand. Consider these points when budgeting for your trip and focus more on your upcoming adventure.

Planning your rental in advance, considering the varying factors, and knowing when to travel during off-peak periods can significantly impact your overall rental cost. With a bit of research, you can find the perfect rental car and make your Australian journey even more enjoyable and memorable.

Always the Cheapest in the Market

Alpha Car Hire is proud to provide travellers and tourists with cost-effective car rental services at a fraction of the price without compromising quality. We have a wide range of rental vehicles across several locations. Book online today, or give us a call and book over the phone to speak with our concierge service. We will happily talk you through the process, discuss pricing and give you a rundown of our current deals and specials! Happy travels!