Car Sharing or Car Hire?

How car sharing works

Car share companies such as GoGet and Flexicar park cars in dedicated bays, or pods, around their cities. You join as a member, book a car in the app by the hour or the day, and unlock it with the app or a smartcard. There's no counter and no paperwork at pick-up.

• You pay by time and distance. GoGet's casual plan starts at $13.30 an hour plus $0.50 a kilometre, or $69 a day with 80 km included and $0.40 for each extra kilometre. Flexicar's plans start at $12 to $15 an hour plus $0.45 a kilometre.
• Fuel and insurance are included. If the tank runs low, you refuel with the fuel card in the car.
• It's a round trip. You return the car to the bay you collected it from. GoGet says all its bookings are return trips.
• Membership comes first. You need to join and have your licence verified before your first booking, so allow time if you're new.
• Coverage is city-based. GoGet has more than 3,000 vehicles across Sydney, Melbourne, Brisbane and Canberra.

How car hire works

With car hire, you book a car for one or more days from a rental company's branch, often at an airport or in the city centre. You collect it at the counter with your licence and a card.

• You pay by the day. Most hire cars collected in Australian cities include unlimited kilometres. Country and remote branches can cap them. See kilometre allowances.
• You refuel it yourself. Cars are usually supplied full and should be returned full.
• You can drive one way. You can return the car to a different branch, though the rental company may charge a one-way fee.
• You can pick up at the airport. Rental companies have desks at or near the major airports. See on-airport and off-airport car hire.
• More car types. You can choose people movers, 4WDs and larger cars, and compare several rental companies at once.

Which costs less?

For a short trip, car sharing usually wins. A two-hour grocery run of 15 km with GoGet's casual plan costs about $34: $26.60 for the time plus $7.50 for the distance.

The more you drive, the more the per-kilometre charge adds up. A two-day weekend away covering 400 km with the same plan is about $234: $138 for two days with 160 km included, plus $96 for the other 240 km at $0.40 each. That's before any membership fee. A hire car from a city branch usually includes unlimited kilometres, so on longer trips it's often cheaper. Compare car hire prices for your dates to check.

Which to choose

• Car sharing suits short errands in the city, especially if a car share bay is near you and you don't want to own a car.
• Car hire suits travellers arriving by plane, trips of a day or more, long distances, one-way journeys, and groups who need a bigger vehicle.

Next steps

• Features to consider when choosing a car: what to compare in each quote
• Types of vehicles: the car hire categories explained

Part of Before You Book in the Car Hire Handbook.