Long Term Car Hire vs Short Term Hire: What’s Cheaper?

Choosing between long term and short term car hire isn’t always as simple as comparing daily rates. The cheapest option depends heavily on how long you need the car, the purpose of your trip, and the flexibility you expect. Whether you’re hiring a car for a weekend getaway, a work contract, or because your own vehicle is off the road, understanding the real cost differences can save you a substantial amount of money — and a lot of stress.

At Car Rentals Near Me we explore the differences between long term and short term car hire.

When Long term car hire is cheaper

Long term and short term rental car rates may look different in real life. The cheapest of these takes a lot of form, largely determined by the duration of time you need the car, the nature of your travel plans and the degree to which it’s flexible. Whether you’re booking a car for a weekend getaway, a work contract or your own vehicle is off the road, knowing what the actual cost differences are can save you a heck of a lot of money — and a hell of a lot of stress. Here, we dissect the pros/costs/preferred scenarios for both long term and short term rentals for you to decide which option really works for your situation.

When is short term car hire more suitable
Short term hire is typically speaking, generally means renting a car for from a day to a week or two. It’s the most widespread form of rentals and the approach that customers who want to be simple and cheap and convenient when you don’t have to commit to a long term duration when booking.

✔ Best suited for:

  • Weekend trips.
  • Not at Fault Car Hire
  • Day trips or short holidays.
  • Business meetings or short work vacations.
  • Emergencies (such as when your vehicle fails).
  • Occasional driving needs.

✔ Benefits of short term hire:


Flexibility: You pick precisely the time and the days you need, no contract.
Easier to budget for: Short term rates are simple — pay for what you use and nothing more.
Ideal for infrequent drivers: Only a few infrequent car rentals a year will keep costs down.

✘ Short term hire may be flawed.
Rates for car rentals done on a day to day basis are generally higher, but if you alter your plan or prolong it unexpectedly enough, the price can surge. Take your car for 3-4 weeks instead of a few days (you do not need that for as long).

The Importance of Long Term Car Hire

Long term hire is usually 28 days or more, and most rental companies have discounted rates beyond the month mark. As life grows more flexible — and more people turn to remote work, move temporarily or navigate extended car repairs — long term hire has become a smart business model and a cost effective one.

✔ Best suited for:

  • Long work contracts.
  • Medium term relocation.
  • Staying in Australia for a few months or weeks.
  • Students or interstate workers.
  • When a car or two you are purchasing is taken for an extended period of time to be repaired.
  • People avoiding long term finance or car ownership costs.

✔ Benefits of going long term for hire:

Big cost savings: The daily rate falls dramatically once you venture into long term territory. What could be $60 to $90/day for short term may come down quite a bit once booked monthly.

No long contracts or finance: Compared with leasing or buying, you don’t have to be tied down for years.
Servicing and maintenance included: You don’t have to shell out for servicing, tyres, rego, roadside assistance or mechanical surprises.

Reliable replacement vehicle: If there’s a problem, the hire agency swaps you into another car quickly.

✘ Downsides of long term hire.
But hire that lasts longer requires a commitment, even if it costs less than a short term one on a per day basis. Hiring in bulk, in some cases you will even end up using short term rentals because if you only need the car for a few days a week, maybe it would be more affordable to only hire after they need it or hire them a few days a week as part of the company hiring agency.

Which One Is Cheaper? The Real Cost Breakdown

Short term hire is cheaper when:

  • You want the car for a few days or up to two weeks.
  • Your plans are uncertain.
  • You’re not driving too much and you don’t need a car daily.
  • You desire maximum flexibility without an extended booking.

Long term hire is cheaper if:

  • You need a car for 3 to 4 weeks or longer.
  • You want a predictable weekly or monthly cost.
  • Temporary replacement of your car—you simply cannot afford a second car.
  • You are driving on a daily basis, you require something dependable.

For nearly everyone, after the three week mark or better once they reach the three week milestone, the long term hire is the better decision financially.

Long-Term vs Short-Term Hire: Summary Table

SituationBest OptionWhy
Weekend tripsShort-termCheaper & flexible
1–2 week holidayShort-termNo long commitment
3–4 week stayLong-termLower daily rate
Car in repair shopLong-termCost-effective and predictable
Work contract or relocationLong-termMonthly savings + no maintenance
Occasional drivingShort-termPay only when needed

Why Do So Many Drivers Hire For Their Car, Not Buy It?

As the costs of new and used cars soar, many now opt for long term hire because:

  • No loan or finance approval.
  • Don’t need any insurance or registration to organise.
  • No servicing/repair costs.
  • No commitment outside of the hire period.
  • Easy upgrades anytime.
  • And for people who do need a car in the immediate term but have to buy so often over the long term, long term hire will work for you.

When It’s More beter to Hire Short Than Long Term

Short term hire remains the gold standard for:

  • Tourists.
  • Families in need of an extra car for a short event.
  • Individuals testing a type of vehicle.
  • Last minute transport needs.
  • If your car breaks down and you must wait 2-3 days, then short term is the way to go.

Which One Should You Choose?

Rather than have to hire a car outright, make sure that you have the flexibility to take short term hiring. If you know you need a reliable car for weeks or months without worrying about owning one at very least, long term hire is almost always better than getting an old one by car.

Ready to Hire a Car?

Whether you are on a one day rental or on a long term, right hire period can save you hundreds. Get in touch with us today.

Common qestions about long term vs short term car hire

What is the difference between renting a car temporarily in the short term and hiring for the long term?

Long-term hire tends to be cheaper once you’ve relied on the car for several weeks or more daily rates drop and you spare yourself the hassle of recurring booking fees.

For someone only requiring the vehicle for a few days, a weekend or as long as two weeks, a short-term hire offers extreme flexibility and is relatively low cost.

Weekend getaways, short holidays, work-related trips, emergency trips or occasional driving needs are perfect for short-term hire.

Yes, long-term hire typically covers maintenance, registration, roadside assistance and swaps if a car breaks, lowering hidden costs.

Sometimes yes, without loan repayments, registrations, insurance or maintenance costs. Long-term hire provides reliable transport but not long-term commitment.

No, you will remain with the hire for weeks or months, and therefore, your plans may change regularly and you can take the car along with you as long as you take care of it and return it back in the same condition as you took it

Think about how often you drive, how long you’d want the car and where you are going. Then you will be decide how long you need to hire the car.

Of course, if you rent multiple times over weeks or months, long term hire tends to overall cost less than doing multiple short term rentals.

People on work contracts, moving, or having any vehicle repaired. Long term hire is for anyone in need of reliable wheels for weeks, even months.

Tourists, casual drivers, short trips and people who only need a car for a few days or a weekend.

Most of the time, after 3 weeks the savings start to accumulate, which makes long term hire the more sensible option.

It depends on what needs to be fixed. Generally, it is better as it provides a dependable replacement without the long term financial burden of owning another vehicle.

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