One-way Car Hire Fees Explained: What You Pay and How to Pay Less

Why rental companies charge a one-way fee, what affects the amount, and practical ways to reduce it on your next Australian road trip.

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One-way car hire fees explained
By Australia Rent CarPublished 2 May 2024Updated 27 Oct 20268 min readAustralia Travel Tips

A one-way rental lets you pick up a car in one city and drop it off in another, which is exactly what most Australian road trips need. The convenience comes with a cost, though: a one-way fee, sometimes called a drop fee or relocation charge, that can range from nothing at all to several hundred dollars.

This guide explains why the fee exists, what makes it go up or down, and how to compare quotes so the one-way fee does not surprise you at the counter.

At a glance

What it isA charge for returning the car to a different location
Also calledDrop fee, one-way charge, relocation fee
Typical rangeFrom free on busy routes to several hundred dollars on remote ones
When you payIncluded in the quote or paid at the rental desk
Biggest factorHow far the car has to travel back to where it is needed

1Why Do Rental Companies Charge a One-way Fee?

When you leave a car in a different city, the rental company either has to rent it out from that location or move it back. Moving a car costs money: a staff driver, fuel, a truck or a ferry crossing, and the days the car is not earning. The one-way fee covers that cost.

This is why fees are low, or even waived, on busy routes where cars naturally flow in both directions, such as Sydney to Brisbane or Melbourne to Sydney. On routes where most travellers only go one way, such as Perth to Broome or Adelaide to Darwin, the supplier knows it will have to bring the car back, and the fee is higher.

2What Affects the Size of the Fee?

Distance and direction

Longer trips usually cost more, but direction matters as much as distance. A route that is popular in one direction in one season may be cheap in the other.

Remote locations

Drop-offs in places such as Broome, Exmouth, Alice Springs, Darwin and Cairns often carry higher fees because the car has a long way to go before it is needed again.

Season and demand

In the northern dry season, from about May to October, many travellers drive north. Fees for heading south at the end of the season can be lower, while fees into the north at the start of it can be higher.

Vehicle category

  • Economy and compact
  • SUV and 4WD
  • Vans and people movers
  • Luxury and premium

Specialist vehicles, such as 4WDs and 12-seat vans, are harder to replace and often attract higher one-way fees than small cars.

Supplier network

A supplier with branches in both cities can rent the car out again quickly. A supplier with only a few branches may charge more or not offer the route at all.

3How the Fee Appears in Your Quote

Some suppliers include the one-way fee in the price you see when you search. Others list it as a separate charge payable at the rental desk. Read the rate details before you book and look for wording such as “one-way fee”, “drop charge” or “inter-city fee”.

Tip

Always compare the total price, including the one-way fee, airport charges and any young-driver surcharge, rather than the headline daily rate.

When you search on Australia Rent Car, choose “One-way” and enter both locations. The results show the deals that allow your route, so you can compare the full cost side by side.

4Ten Ways to Pay Less for a One-way Rental

  • Start and finish at major hubs. Airport-to-airport and city-to-city rentals usually have the lowest fees.
  • Try the reverse direction. If your plans are flexible, the same route in the other direction can be much cheaper.
  • Compare several suppliers. Fees for the same route can vary widely between brands.
  • Book early. One-way stock is limited on popular routes in peak season.
  • Rent for longer. On some routes, the one-way fee is reduced or waived for longer rentals.
  • Choose a common car type. Economy cars and compact SUVs are easier for the supplier to rent out again.
  • Avoid remote drop-offs. Driving the last section back to a regional city can sometimes cost less than dropping off in a remote town.
  • Look for relocation deals. Some companies offer very low daily rates to move cars between cities on set dates, usually with a short time limit.
  • Travel outside peak demand. School holidays and the start of the northern dry season push prices up.
  • Check what is included. Unlimited kilometres can be worth more than a lower one-way fee on long routes.

5Other Charges to Watch For

  • Premium location fees at airports and some railway stations.
  • Young driver surcharges for drivers under 25.
  • Additional driver fees for each extra named driver.
  • Toll admin fees when the supplier passes on e-tag charges.
  • Fuel charges if the car is not returned with the agreed fuel level.
  • Late return fees if you drop off after the agreed time.

Also read: Airport car hire pick-up checklist

6Example: Comparing Two One-way Quotes

The cheapest daily rate is not always the cheapest rental. The example below uses illustrative figures for a seven-day one-way rental to show why you should compare total prices.

  • Quote A: A$55 per day, plus a one-way fee of A$300 paid at the desk. Total for 7 days: A$685.
  • Quote B: A$75 per day with the one-way fee included. Total for 7 days: A$525.

Quote B looks more expensive at first glance but costs A$160 less. Fees and prices change all the time, so use these figures only as an example and compare real quotes for your route and dates.

Tip

Write down the total for each quote, including the one-way fee, before you decide. It takes two minutes and avoids the most common booking mistake.

7Routes Where One-way Fees Need Extra Attention

Some routes that travellers ask about need special planning. Tasmania is one example: most rental companies do not allow their cars on the Spirit of Tasmania ferry, so a mainland car usually cannot be dropped off in Hobart or Launceston. Plan separate rentals on each side of Bass Strait instead.

Long outback routes, such as Adelaide to Darwin or Perth to Broome, are available with several suppliers but often carry high fees and may limit unsealed roads. Check the terms before you plan detours.

Also read: Popular one-way car rental routes in Australia

Frequently Asked Questions

Do all rental companies charge a one-way fee?

No. Some suppliers waive the fee on busy routes between major cities, while others charge on every one-way rental. The amount also changes with season and car type, so compare quotes for your dates.

Is the one-way fee refundable if I cancel?

If the fee is part of a prepaid booking with free cancellation, it is refunded with the rest of the booking under the cancellation terms. If it is payable at the desk, you only pay it when you collect the car.

Why is a one-way rental to Broome or Darwin so expensive?

Cars left in remote towns often have to be driven or trucked back thousands of kilometres. The fee covers that cost, so remote drop-offs cost more than city drop-offs.

Can I drop a mainland rental car off in Tasmania?

Usually not. Most rental companies do not allow their cars on the Spirit of Tasmania, so travellers book one car on the mainland and another in Tasmania.

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About the author

Australia Rent Car compares car hire from the top suppliers across Australia, with one-way trips, airport pick-ups and total prices side by side.

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