Renting a car in Melbourne doesn’t have to cost a fortune. Whether you’re visiting from interstate, arriving at Tullamarine Airport, or just need a set of wheels for a week — there are genuinely cheap options out there.
But not all “budget” companies are created equal. Some charge low daily rates, then add fees that quietly double the bill.
This guide cuts through the noise. Below, you’ll find the 10 most affordable car rental companies in Melbourne, what they actually offer, and how to get the best deal.
Why Car Rental Prices Vary So Much in Melbourne
Melbourne is a big, spread-out city. Public transport is decent, but if you’re heading to the Yarra Valley, Phillip Island, or the Great Ocean Road — a hire car makes life much easier.
Demand drives price. School holidays, summer, and major events like the Formula 1 Grand Prix push rates up sharply. Book at least 2–3 weeks ahead to lock in lower fares.
10 Cheapest Car Rental Companies in Melbourne
1. Bayswater Car Rental
One of Melbourne’s best-kept secrets for budget travellers. Bayswater is a local operator with straightforward pricing and no nasty surprises.
- Daily rates from around $35–$50 AUD
- Includes basic insurance
- Multiple Melbourne pickup locations
- Great for longer rentals
Best for: Budget-conscious locals and interstate visitors.
2. Rent-a-Bomb
The name says it all — and that’s kind of the point. Rent-a-Bomb offers older vehicles at very low prices. Perfect if you just need to get from A to B.
- Rates can start as low as $29/day
- Older fleet (mostly pre-2010 vehicles)
- Limited insurance options — read the fine print
Best for: Short trips where comfort isn’t the priority.
3. Europcar
A global brand with competitive Melbourne pricing. Europcar frequently offers online discounts and loyalty rewards.
- Rates from around $45–$70/day depending on vehicle class
- Modern, well-maintained fleet
- Airport and city pickup points
- Frequent promotions through their website and app
Best for: Travellers who want reliability without paying premium rates.
4. Budget Car Rental
Budget lives up to its name more often than people expect. Book online in advance and you’ll find solid rates.
- Compact cars from $40–$60/day
- Unlimited kilometre deals available
- Melbourne Airport and CBD locations
- Frequent bundle deals with accommodation platforms
Best for: Visitors flying into Tullamarine who want convenience.
5. Thrifty Car Rental
Thrifty sits in the middle ground — slightly above Rent-a-Bomb but below Hertz. Decent fleet quality and frequent specials.
- Daily rates from $45/day
- Good availability across Melbourne
- One-way rentals available (fees apply)
Best for: Weekend road trips and one-way hires.
6. Ace Rental Cars
Ace is a no-frills option that regularly undercuts the big brands. Less marketing, more savings.
- Rates from $38–$55/day
- Older to mid-age fleet
- Airport collection available
- Insurance add-ons priced separately
Best for: Solo travellers or couples on a tight budget.
7. Avis
Avis competes hard on price when you book through comparison sites. Watch for their weekend and weekly rate deals.
- Economy cars from $50/day
- Strong loyalty programme (Avis Preferred)
- Well-maintained newer fleet
- Easy app-based booking
Best for: Frequent renters who want to earn points.
8. Hertz
Hertz isn’t typically the cheapest. But their Gold Plus Rewards programme and regular promotions can bring costs down significantly.
- Base rates from $55–$80/day
- Premium, newer vehicles
- Melbourne Airport counter with short wait times
Best for: Business travellers or anyone wanting a newer car at a manageable price.
9. East Coast Car Rentals
An Australian-owned company with solid coverage along the east coast. Useful if you’re planning a one-way trip from Melbourne to Sydney or Brisbane.
- Rates from $40/day
- One-way hire speciality
- Good range of vehicles including SUVs and vans
Best for: Road trippers planning longer interstate journeys.
10. Flexicar (Car Share)
Not a traditional rental — but worth mentioning. Flexicar operates car-sharing vehicles around Melbourne’s inner suburbs. If you only need a car for a few hours, it’s often the cheapest option by far.
- Hourly rates from $15–$20/hour
- No daily commitment needed
- Best for short errands, not road trips
Best for: Melburnians needing occasional short trips.
Quick Price Comparison Table
| Company | Est. Daily Rate (AUD) | Fleet Age | Airport Pickup | Unlimited KMs |
|---|---|---|---|---|
| Rent-a-Bomb | $29–$40 | Older | No | Yes |
| Bayswater | $35–$50 | Mixed | Some | Yes |
| Ace Rental Cars | $38–$55 | Mixed | Yes | Varies |
| Budget | $40–$60 | Modern | Yes | Deals available |
| East Coast | $40–$55 | Mixed | Yes | Yes |
| Thrifty | $45–$65 | Modern | Yes | Varies |
| Europcar | $45–$70 | Modern | Yes | Yes |
| Avis | $50–$70 | Modern | Yes | Yes |
| Hertz | $55–$80 | Premium | Yes | Yes |
| Flexicar | $15–$20/hr | Modern | No | N/A |
Rates are approximate and vary by season, vehicle type, and booking lead time. Always confirm pricing directly with the provider.
How to Find the Cheapest Car Hire in Melbourne
Getting a low price isn’t just about choosing the right company. Here’s what actually makes a difference:
- Book 2–4 weeks in advance. Last-minute rates are almost always higher.
- Use comparison sites. Try Compare the Market, Rentalcars, or DriveNow to benchmark prices quickly.
- Avoid airport pickups if you can. Airport location surcharges can add $10–$20 per day.
- Check weekly rates. Renting for 7 days is often cheaper per day than 3 or 4.
- Decline unnecessary extras. Pre-paid fuel, GPS units, and premium insurance can silently inflate your bill.
- Join loyalty programmes. Avis, Hertz, and Europcar all offer free membership with real savings over time.
What to Watch Out for With Cheap Car Rentals
Cheap rates are great — until they’re not. A few things to check before signing anything:
- Excess/deductible amounts. A $3,000+ excess is common on budget rentals. Consider a standalone excess reduction policy.
- Age surcharges. Drivers under 25 often pay an extra $10–$25/day at most companies.
- Kilometre caps. Some budget operators limit you to 100km/day. Know your route.
- Fuel policy. Full-to-full is fairest. Avoid pre-paid fuel deals unless you’ll use the whole tank.
- Credit card holds. Most companies hold $200–$1,000 on your card at pickup.
Melbourne vs Darwin: Thinking About a Longer Rental?
If you’re planning a longer Australian road trip or need wheels for an extended period, it’s worth comparing options across cities. For example, monthly car rental in Darwin or long-term car rental in Darwin can be significantly cheaper per day than short-term hires in Melbourne — useful if your trip takes you further north.
Frequently Asked Questions
- What is the cheapest car rental company in Melbourne? For the absolute lowest rate, Rent-a-Bomb and Bayswater Car Rental consistently offer the cheapest options. Expect to pay from $29–$40/day for a basic vehicle.
- Can I hire a car in Melbourne without a credit card? Some companies accept debit cards, but most require a credit card for the security bond. Call ahead to confirm.
- Is car hire cheaper at Melbourne Airport or the CBD? CBD pickup is usually cheaper due to lower airport surcharges. If you’re flying in, consider catching the Skybus to the city and collecting your car there.
- What age do you need to be to rent a car in Melbourne? Most companies require drivers to be at least 21. Some accept 18+ with a surcharge. Under-25 fees typically apply until age 25.
- How far in advance should I book a cheap hire car in Melbourne? Two to four weeks ahead is the sweet spot for the best pricing. Booking more than 8 weeks out doesn’t always guarantee cheaper rates.
- Are there unlimited kilometre deals available? Yes — Budget, Europcar, and East Coast all offer unlimited kilometre options, particularly on weekly hires. Always confirm this at booking.
Final Thoughts
Melbourne is a great city to explore by car — especially if you’re heading outside the CBD. The key is knowing where to look and what to avoid.
Stick to trusted companies, read the fine print on insurance, and book early. You don’t need to spend a lot to get reliable wheels.
Whether you’re after a small hatchback for the weekend or a larger vehicle for a family road trip, there’s a genuinely affordable option in Melbourne for every type of traveller.
Hi, I’m Ethan Walker, an Australian travel writer passionate about road trips, car rentals, and exploring the Northern Territory. I’ve spent years travelling across places like Kakadu, Litchfield, Darwin, and nearby outback destinations, often through self-drive adventures and long-distance rental tours. I studied Travel & Tourism Communication at the University of Queensland and have been recognised with several student writing awards for travel storytelling and practical travel guides. My goal is to help travellers enjoy safer, smarter, and more memorable Australian adventures.
