What is the total cost breakdown of a rental car

The cost of a rental car can include a number of charges aside from the actual cost of the vehicle. Read on to learn more.

There are a number of different surcharges and fees that contribute to the car rental rate you see on your screen. The cost breakdown is different for each supplier, but there are many charges they all have in common. If you want to understand how the car rental price structure works, here is a guide.

What are the charges?

The additional taxes and surcharges that are added to your car rental rate depend on a number of things. For example, the location you are picking up the car from, the company you are hiring from, and the age of the driver can all affect the price. These charges are usually charged at a daily rate. Note that even if you choose to add extras to your booking, this should not alter the base rate. The exact cost breakdown may be different for each of our suppliers.

The base rate is the basic cost of your rental car before any relevant taxes and surcharges have been added. Premium location fees, admin fees and Goods and Services Tax (GST) are included in your total cost, however, as per the Terms and Conditions of rental, the same percentages are applied to all extras that you request. The percentage changed may be different depending on the supplier and location you are hiring from. If you choose to request any optional extras such as child seats or a GPS, these will incur an extra charge.

Example of a hire car rental cost breakdown

Keep in mind that the exact cost breakdown may be different for each supplier. Below you will find a quick overview of some of the charges that contribute to the price.

Quotes will include:

Vehicle Registration Recovery Fee: This is a charge that reimburses the car rental company for any registration and compulsory insurance charges imposed by the states and territories of Australia.

Premium Location Surcharge: This is an additional surcharge charged by the car hire company when you rent a car from an airport or some city and remote locations. The amount varies depending on which car rental company you hire the vehicle from, and the location where you collect the vehicle. In Australia, this amount can range from 0% to 30%. The surcharge applies to all rental costs, including the cost to hire the car itself.

Administration Fee: A fee applied to the total cost to cover the state contract Stamp Duty costs.

Tax: Represents state and local sales tax on total rental charges.

Rental Cost: Refers to the total amount of rental charges.