Not for the city. Melbourne’s trams are free in the CBD and the rest of the network is cheap and frequent. But for the Great Ocean Road, the Yarra Valley, Phillip Island or the Mornington Peninsula, a rental car gives you far more freedom than tours.
At a glance
1Getting Around Without a Car
Trams are free within the Free Tram Zone in the CBD; you do not need a myki if you stay inside it. Beyond it, a full-fare myki costs A$5.50 for two hours or A$11.00 a day in Zones 1 and 2, with a weekend daily cap of A$7.60 (fares from 1 January 2025).
2Driving in Melbourne
- Hook turns: at signposted CBD intersections, turn right from the far-left lane.
- Trams have priority; stop behind trams when passengers are getting on and off.
- CityLink (from the airport and through the city) and EastLink are electronic toll roads.
- Parking in the CBD is expensive and limited.
Collect the car at Melbourne Airport or a suburban branch on the day you leave the city, and avoid CBD parking altogether.
3Day Trips Where a Car Is Worth It
- Great Ocean Road: see the coast at your own pace. Read the 3-day itinerary.
- Yarra Valley and Dandenong Ranges: wineries, Healesville Sanctuary and Puffing Billy.
- Phillip Island: the penguin parade at dusk.
- Mornington Peninsula: beaches, hot springs and wineries.
- Grampians: a long weekend of hiking.
4Example: A Week in Melbourne
A typical week might include three or four days in the city and two or three days out of town. Use trams and trains in the city, where the Free Tram Zone and daily fare caps keep costs low, then collect a car from the airport or a suburban branch for the Great Ocean Road and the Yarra Valley. You avoid CBD parking and pay for the car only when you use it.
5Tips for Driving in Melbourne
- Learn the hook turn before you drive in the CBD; signs at intersections show where it applies.
- Never overtake a tram on the left when it stops; wait until passengers have boarded.
- Use the Western Ring Road to bypass the city between the airport and the west and south-west.
- CityLink and EastLink are electronic; you do not need to do anything, but expect the supplier to bill the tolls.
6Alternatives to Renting
- Day tours: Great Ocean Road, Phillip Island and Yarra Valley tours run daily from the city.
- V/Line regional trains: reach Geelong, Ballarat and Bendigo.
- Car share: short hires by the hour in the inner suburbs, if you are a member.
- Airport transfers: SkyBus links Melbourne Airport and the city.
If you plan more than one day trip, or want to stop where tours do not, renting usually works out better value and far more flexible.
7Rental Costs in Melbourne
In 2025 data, Melbourne was one of the cheaper capitals: about A$81 a day for city pick-up, A$103 at the airport and A$68 off-airport. June was cheapest and December most expensive.
Also read: Melbourne Airport car rental: on-airport vs off-airport
Frequently Asked Questions
Do you need a car in Melbourne?
Not for the city, where trams are free in the CBD. A car is best for day trips and the Great Ocean Road.
What is a hook turn?
A right turn made from the left lane at signposted CBD intersections, so trams are not blocked.
How much is a myki daily fare?
A$11.00 for Zones 1 and 2 on weekdays, capped at A$7.60 on weekends (full fare, from 1 January 2025).
Are there tolls in Melbourne?
Yes, CityLink and EastLink, billed by the rental company with an admin fee.
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