Renting a car gives more flexibility in travelling, compared to trains and buses in Australia. It gives the possibility to make stop-overs whenever wished and allows spontaneous changes in the route. Travelling by car is almost the only option, especially for trips to explore the outback, national parks and farms.

There are many car rental companies in Australia. In addition to the smaller ones, Europcar, Hertz, Budget and Avis are also active in Australia, just like in Europe. The Australian rental contracts are also pretty similar to those in Europe. People who are at least 21 years old (learners permits and provisional or probationary licences are usually not acceptable) are eligible to rent a car just by showing a driving licence that has been issued in English or an international driving licence.

During the rental procedure, a decision has to be made on the type of preferred insurance. Depending on how much you would like to invest for the rental car, in case the car gets damaged, you have to select between different insurance options that bring different amount of excess. The excess can go up to $3000 and it can be reduced down to $200-$300 by paying a higher amount for the insurance. So the more money you invest for insurance, the less you have to pay in case of bad luck! Nevertheless, be aware of the fact that, in case of an accident, the driver has to pay first and then try to get the money from the insurance company eventually.

Other than insurance, always some bond has to be paid, if the car is rented by cash or EC-Card (for example Maestro and Visa Electron Cards). Using credit card makes the whole procedure easier since the bond gets withdrawn only if it is needed.

The "authorized driver" is fully responsible of the vehicle during the complete rental period which is the time when the car is picked up, until the car is deemed to be returned to the return station. The vehicle has to be returned in the same condition as it is picked up. It is recommended to have a careful look at the car during pick up and make sure that a responsible person notes down every kind of scratch and damage with an authorized signature. Failing to do so makes the insurance holder responsible of every problem that has not been acknowledged by the rental company before the rental period. After delivering the car back, it is the insurance holders' responsibility to get an acknowledge from the rental company that the car has been returned without any problems. Following this procedure to the end reduces the risk of having unnecessary problems.

The most common renting approach is returning the car to the station where it was picked up from. It is also possible to return the car to another station but then an additional 'Vehicle Relocation Fee' has to be paid which may be quite expensive. The rental contract usually covers unlimited kilometers but it is better to double check if there are any kilometer restrictions. The tank is usually full when the vehicle is picked up and it should be full when it is returned. If not, then the rental company has to do the tanking work and they charge the driver accordingly. In the rental contract, there is usually a section about "where you can and can not drive the vehicle". The places that are forbidden are usually the places where the risk of the car getting damaged or stolen is pretty high. Attention should be paid because these high-risk areas are usually not covered by insurance. Unsealed roads in Australian outback are the most common roads that are banned by the rental car companies.

The rental car can come with several add-ons that the client may select. Baby seat is the most common accessory that gets requested in Australia. Other than that, it is also possible to book a car with navigation system but this should be clearified with the shop. Not every rental station has such cars with navigation system. They try to provide it upon request.

Many families drive around with caravans in Australia. Some of the car rental companies can also offer caravans but if not, there are several caravan renting (and even selling) companies that can easily be found on the internet.