Key Points
- You can expect to pay upwards of $70 a day for a rental car in New Zealand.
- You may be able to rent something cheaper if you're happy with a smaller/older vehicle, and pick-up/drop-off outside of an airport.
- Car rental prices are more expensive during peak holiday seasons and school holidays.
How much does a rental car cost?
The cost of rental cars can vary so wildly that it's almost redundant to even give a figure. For example, you could be looking at anywhere from about $25 a day, to well over $100 or even $200.
But we can whittle that figure down a little if we start looking at what kind of car you want to rent, as well as a few other factors that dictate prices.
Which factors determine how much rental cars cost?
Many factors dictate the cost of a rental car:
Type of vehicle
This is probably the biggest factor. Rental companies typically offer cars of all sizes, as well as brand new models and those up to five or six years old. As expected, older models tend to be cheaper, as do smaller cars.
So if you're on a budget, a 2020 Toyota Yaris will be cheaper than a 2024 Toyota Highlander.
Another factor is the fuel used. Rental car companies are increasingly offering hybrid and even full electric models. But again, these will likely come at a higher cost.
Insurance
Insurance is an important part of your rental agreement. Much like it's not recommended you drive your car without some sort of insurance, you shouldn't drive a rental without it, either.
Most rental companies have a few different insurance plans to choose from. They might include a basic plan with little to no cover, up to full coverage with no excess or limits to worry about.
A basic plan is often included in the rental price, or available for just a few extra dollars a day. But full insurance cover could cost anywhere from $20-$35 extra a day on top of the rental price. Or more for insurance plans with more benefits and add-ons.
It's worth noting that if you've got travel insurance, it might include cover for car rental excess, which could save you paying twice for insurance.
→Related article: New Zealand’s Best Car Insurance
Demand
As with many things, supply and demand will impact the price of rental cars. If you ask for the exact same vehicle, from the exact same company in both December and in August, you'll likely get two very different prices.
Long weekends, school holidays and summer months are when road trips and holidays are all the rage and rental cars come at a premium. On the other hand, if you take a week off work in the middle of winter you'll probably find some good deals.
Furthermore, booking well ahead of time can ensure there are plenty of cheap rental cars available (the best deals sell out quick) and can also keep costs down.
Location
This may be a little known secret that can play a big part in the price you get. Rental companies are often conveniently located inside airports. However, branches located inside airports typically pay big costs to the airport to use their space. And this added expense is reflected in the price of their rental cars.
By hiring from a location outside of an airport, you can often pick up a better rate.
This could be by using a city location (for example, many rental companies will have an Auckland Airport and Auckland City location). Or, it could be simply by using a company strategically located just outside of the airport.
Many car rental companies located just outside of airports run their own shuttle services for clients.
Competitiveness
An area awash with rental companies will have more competition and, thus, probably better deals and discounts than another spot with only one or two providers.
Other things to consider
Other factors that can affect the price, value or whether or not a vehicle will be appropriate for your needs include:
- Age and driver restrictions – Certain companies may have minimum age requirements or charge a premium for young drivers. Likewise, many rental car companies will only rent to full licence holders, but a handful do accept restricted licence drivers. You may just have to call up and ask.
- Insurance caps – Some companies provide an insurance cap. For example, insurance may cost $30 a day, up to $500. So even if you hire the vehicle for a few months, your insurance costs would cost no more than the limit ($500) in total. This could be an important factor to consider for long-term rentals.
- Fuel costs – Hybrids and electric cars will likely cost more to rent, but can save in fuel costs. Additionally, an older petrol car may be cheaper than a newer one, but the fuel efficiency may be less, costing you more at the pump.
So how much do rental cars cost?
As we mentioned above, this isn't an easy answer. However, when you factor in the cost of the vehicle, and the insurance, you can expect to pay upwards of $70 a day for rental cars in New Zealand. You may be able to get something cheaper if you are happy with smaller and older vehicles, and are happy to pick up outside of the airport terminal. Or, you forgo comprehensive insurance. On the other hand, during peak times, you will likely have to pay more than this figure for even basic vehicles.
