New Zealand’s South Island is a land of breathtaking landscapes, from snow-capped mountains and pristine fjords to golden beaches and lush rainforests. For many, the ultimate way to explore this stunning region is on a self-drive adventure, allowing the freedom to stop at hidden gems and soak in the scenery at your own pace. However, a major expense for any South Island road trip is car rental. While finding truly “cheap” car rentals in New Zealand can be relative during peak season, with smart planning and a focus on budget-friendly options, you can significantly reduce this cost and make your dream South Island journey a reality.
Table of Contents
- Understanding the New Zealand Car Rental Landscape
- Strategies for Finding More Affordable Rentals
- 1. Book in Advance, Especially During Peak Season
- 2. Compare Prices Across Multiple Companies
- 3. Consider Smaller/Local Rental Companies
- 4. Look for Deals and Discount Codes
- 5. Be Flexible with Your Dates and Pick-up/Drop-off Locations
- 6. Opt for Longer Rental Periods
- 7. Carefully Assess Your Insurance Needs and Options
- 8. Consider a Car/Campervan Hybrid
- Budget-Friendly Route Considerations for the South Island
- Fuel Efficiency and Driving Tips
- Final Thoughts: Is Truly “Cheap” Possible?
Understanding the New Zealand Car Rental Landscape
Before diving into specific strategies, it’s crucial to understand a few key aspects of the New Zealand car rental market:
Seasonal Fluctuations
Like most tourist destinations, car rental prices in New Zealand are heavily influenced by seasonality. Peak season typically runs from December to February (summer), with shoulder seasons in spring (September-November) and autumn (March-May). Low season is generally during the winter months (June-August). Expect prices to be considerably higher during peak season and major holidays.
Insurance is Non-Negotiable
New Zealand rental car companies require you to have insurance. While basic third-party liability is usually included in the base rate, the recommended and widely used option is a collision damage waiver (CDW) or loss damage waiver (LDW). This significantly reduces your excess (deductible) in case of damage. While often an additional daily cost, skimping on this is a risky move, as even minor damage can result in hefty repair bills. Read the insurance terms carefully, paying attention to the excess amount and any exclusions (like certain road types or single-vehicle accidents).
One-Way Rentals and Ferry Fees
If you plan to pick up a car on the North Island and drop it off on the South Island (or vice versa), be prepared for one-way fees. These can be substantial. Similarly, taking your rental car on the Interislander or Bluebridge ferry across the Cook Strait will incur a significant cost. Often, it’s more economical to drop off your car at one port, travel as a foot passenger, and pick up a new rental car at the other port.
Vehicle Size Matters
Larger vehicles, SUVs, and wagons will generally cost more to rent than smaller cars. Carefully consider your needs:
- Number of Passengers: Is it just you, a couple, or a family?
- Luggage: How much luggage will you have? Can it fit comfortably in a smaller boot?
- Planned Activities: Will you be sticking to sealed roads or venturing onto unsealed roads (even authorized ones for rentals)?
A compact or small hatchback is often perfectly adequate for exploring most popular South Island routes.
Strategies for Finding More Affordable Rentals
Now, let’s get into the actionable tips for securing a budget-friendlier ride for your South Island adventure:
1. Book in Advance, Especially During Peak Season
This is arguably the most critical strategy. Rental car availability diminishes and prices soar as demand increases. Aim to book your rental car several months in advance, particularly if traveling during summer or school holidays. You’ll have a wider selection of vehicles and are more likely to find competitive rates.
2. Compare Prices Across Multiple Companies
Don’t settle for the first quote you receive. Utilise rental car comparison websites like:
- Rentalcars.com: A global aggregator with a wide range of companies.
- VroomVroomVroom: Specializes in comparing rental deals in Australia and New Zealand.
- DriveNow: Another Australian and New Zealand focused comparison site.
Also, check the websites of individual rental companies operating in New Zealand. These include both international giants and local providers:
- Major International Players: Hertz, Avis, Budget, Europcar, Thrifty
- Smaller/Local Companies: Apex Car Rentals, Jucy Rentals, Snap Rentals, Ezzie Rentals, Hitch Car Rentals
Comparing across different platforms and directly with companies is essential to finding the best deal for your specific dates and location.
3. Consider Smaller/Local Rental Companies
While the big international brands have large fleets and widespread locations, smaller, local rental companies often offer more competitive pricing. Companies like Apex, Jucy, Snap, Ezzie, and Hitch are popular choices for independent travelers seeking value. They may have slightly older vehicles or fewer locations, but their base rates and sometimes insurance costs can be significantly lower.
Pro Tip: Read reviews carefully for smaller companies to get an idea of customer experiences, vehicle condition, and customer service.
4. Look for Deals and Discount Codes
Keep an eye out for promotions, discount codes, and special offers. These can be found on:
- Rental Car Company Websites: Sign up for newsletters or check their “specials” or “deals” sections.
- Travel Blogs and Websites: Many travel blogs and websites share discount codes for rental cars.
- Airline and Loyalty Programs: Some airlines and loyalty programs offer discounts on car rentals.
5. Be Flexible with Your Dates and Pick-up/Drop-off Locations
If your travel dates are flexible, playing around with slightly different pick-up and drop-off dates can sometimes yield better prices. Similarly, if you’re flying into a major airport like Christchurch (CHC) or Queenstown (ZQN), renting from an off-airport location (requiring a short shuttle or taxi ride) can occasionally be cheaper due to lower airport fees.
6. Opt for Longer Rental Periods
Often, the daily rate decreases the longer you rent a car. If your itinerary allows, consolidating multiple shorter rentals into one longer rental can save you money in the long run.
7. Carefully Assess Your Insurance Needs and Options
While basic insurance is mandatory and recommended, be savvy about additional insurance add-ons. Do you truly need the extra roadside assistance if your travel insurance covers it? Can you potentially reduce your excess through your travel insurance policy or a credit card’s rental car insurance benefit? Always verify the coverage details with your travel insurance provider or credit card company as these benefits often have specific terms and conditions.
8. Consider a Car/Campervan Hybrid
If you’re open to the idea of combining transport and accommodation, a campervan can sometimes be cost-effective, especially for couples or solo travelers. While the initial rental cost might seem higher, you save on accommodation expenses. Companies like Jucy, Spaceships, and Wicked Campers offer smaller and more budget-friendly campervan options perfect for exploring.
Budget-Friendly Route Considerations for the South Island
While flexible in your rental choices, planning a route that minimizes unnecessary driving can also keep costs down (fuel, wear and tear). Here are some popular and stunning South Island routes that are well-suited for a budget car rental:
The Great Alpine Highway (Arthur’s Pass) to the West Coast
- Highlights: dramatic mountain scenery, rainforests, glaciers (Franz Josef and Fox), rugged coastline, Pancake Rocks at Punakaiki.
- Why good for budget: Well-maintained sealed roads, plenty of free or low-cost activities like hiking.
- Considerations: Requires careful driving, especially in winter.
Exploring the Queenstown and Fiordland Region
- Highlights: adventure activities, stunning lakes, majestic Milford Sound (cruise recommended).
- Why good for budget: Many free walks and viewpoints around Queenstown and Te Anau. Driving to Milford Sound is incredibly scenic and free (though a cruise is an added cost).
- Considerations: Queenstown is a popular base, so accommodation and some activities can be pricey.
The East Coast Scenic Route
- Highlights: charming coastal towns (Kaikoura, Oamaru), Oamaru’s Steampunk and Little Blue Penguins, Dunedin’s Scottish heritage and Otago Peninsula.
- Why good for budget: More spread out, allowing for a relaxed pace and fewer daily driving hours. Plenty of opportunities for free walks and exploring towns.
- Considerations: Can be windy along the coast.
Fuel Efficiency and Driving Tips
Once you have your budget-friendly rental, smart driving practices can further save you money:
- Compare Fuel Prices: Use apps or websites to find the cheapest fuel stations in your area. Prices can vary significantly.
- Drive Conservatively: Avoid excessive speeding and unnecessary braking. Smooth acceleration and deceleration are key to fuel efficiency.
- Check Tyre Pressure: Properly inflated tires improve fuel economy. Ask your rental company for recommended pressure and feel free to check them yourself.
- Minimize Weight: Don’t carry unnecessary weight in the car.
- Use Cruise Control When Appropriate: On flat, open roads, cruise control can help maintain a consistent speed and save fuel.
Final Thoughts: Is Truly “Cheap” Possible?
While finding luxury vehicles for rock-bottom prices might be unrealistic, it is absolutely possible to find more affordable car rentals that fit within a budget for exploring the South Island. By planning ahead, comparing extensively, considering smaller companies, and being strategic with your choices, you can significantly reduce the cost of transportation and free up funds for experiencing the incredible activities and attractions that New Zealand has to offer. A bit of research and flexibility will go a long way in making your South Island road trip both unforgettable and financially manageable. Happy travels!