Personal car rentals in Melbourne have been on the rise for several years, with rental prices soaring from about $8,000 a year ago to about $11,000 today.
Now, personal cars are the mainstay of many families’ financial lives, with more than three quarters of all rental homes in the state paying less than $2,000 per month.
The state government says it has now closed its “cash-only” car rental scheme and is looking at expanding the model to include more options, including a carpooling service.
A number of rental car companies are also exploring their own options to help boost the rental market.
There are three private rental car rental companies currently operating in Victoria: Cayman Car Rentals, Ferrari Car Renting and RV2.
Ferraris are the top-selling cars in Australia and have been used in more than half of all personal car rentals across Australia.
“We’re looking at looking at some different rental car services to get more people to consider renting a car,” said Ferrari CTO Mark De Castro.
“We are looking at ways to make it more accessible and affordable for renters, and give more options to people who would otherwise have to be forced to rent a car.”
Caymans Car Renters owner Chris Mitchell said rental rates were a good indicator of demand for cars.
“There’s a lot of demand,” he said.
Crayons Car Rental manager Nick O’Sullivan said rental car costs were a “tremendous” factor in people choosing to rent their own cars.
He said rental prices were driven by “personal preference”.
“It’s really the economics of it, that’s why we’re charging more,” he told 7.30.
Mr Mitchell said he believed rental rates would continue to rise as the state’s population continued to grow.
“I think it’s going to go up as more people get into this lifestyle, so it’s good for the economy,” he added.
“It will bring more people into the market and I think that’s going.
Renters are still paying their mortgage and their rent and it’s a great way to get a car, but I think there’s a little bit more room for growth.”
Car rentals are on the increase in Victoria, but only for the wealthy Rental car prices have soared in Victoria over the past few years.
The median cost of a rental car in Victoria is now about $7,000.
But the state government wants to bring the rental rate down to a more reasonable level, so car owners can afford to live in Melbourne.
It will be up to the states consumer watchdog to determine how much the change will mean for rental rates.
According to a recent report by the Victorian Council for Housing and Housing Development, rental prices in the CBD are set to go through the roof by 2021.
In 2015, there were almost 8,000 car rental properties in Victoria.
More to come.