Hiring vs. Buying a Car as a Backpacker

Hiring vs. Buying a Car for Your Australia & New Zealand Road Trip (Backpacker Edition)

Backpackers planning an Australia or New Zealand adventure often ask: Should I buy a car, or is hiring a car cheaper? Here’s a cost-breakdown tailored specifically for budget travellers.

Option 1: Hiring a Car

Renting a car offers flexibility without the stress of ownership.

Pros

• No maintenance or repair costs

• Easy pick-up/drop-off in major cities

• Great for shorter backpacking loops

• Access to $1/day Imoova relocation car rental deals

• Imoova deals often have fuel reimbursements

• No paperwork & rego to deal with

• Avoid the risk of falling victim to Facebook Marketplace scams

• No big initial outlay = more to spend on travelling!

• Don't have to deal with the stress of trying to resell the vehicle at the end of your travels

Cons

• Long-term rentals can get expensive (unless you are doing relocations)

• Relocation deals have fixed pickup/drop-off dates so you need to be flexible

Costs

A standard car rental in Australia can vary from $40–$85/day. In New Zealand, rental car New Zealand prices are similar, especially in the off-season. But the real money-saver? Imoova’s $1/day relocation vehicles, which let you drive between cities almost free. Imoova work with all the major rental companies like Europcar, Avis & Hertz so you can rest assured you're getting a top quality car. Rental companies save money on hiring a driver to relocate their vehicles and you get a cheap roadtrip, win win! You can pick up in every major city as well as more regional locations like Broome, Exmouth, Alice Springs, Airlie Beach, Launceston, Newcastle & more. One of the most popular routes is Cairns - Sydney so you can drive the backpacker East Coast routes on a budget too. They also have campervans if you'd rather combine accomodation / travel costs.

Option 2: Buying a Car

Popular among backpackers staying 3–12 months.

Pros

• Full freedom to travel wherever, whenever

• Resell the car at the end

• Better for long stays or work + travel combos

Cons

• Upfront cost

• Repairs can eat your budget

• You deal with paperwork, insurance, and registration

• Paperwork can be challenging with no fixed address as a backpacker

• Must allow time to sell before leaving

Costs

• Purchase: $3,000–$7,000 for a reliable backpacker car

• Rego + insurance: ~$800–$1,500 per year

• Repairs: unpredictable but plan ~$500 for safety

If you resell well, you can recover 50–100% of the purchase price. But if you're unlucky, repairs can cost more than buying.

Verdict for Backpackers

• Short trip (1–8 weeks): Hiring is cheaper, especially using $1/day Imoova cars.

• Medium trip (2–6 months): A mix of cheap rentals + relocations inbetween work stints works great.

• Long stay (6–12+ months): Buying becomes cost-effective.

If you’re tight on cash, start with relocation deals you’ll see the country for almost nothing and it eases the pressure to find a car straight away.