Soaring car hire prices: How to get a better deal on your rental car

"With many still preferring to stay local for their holidays, there's extra demand for car hire in Australia meaning it's never been more important to book in advance," he says.

And booking early is particularly relevant if you are holidaying at peak times when everyone else seems to be travelling.

Another factor to consider is where you pick up a car. According to Wotif, across January-March this year, city centres were the most popular pick-up points for car hire, with Melbourne, Sydney and Brisbane topping the list, and regional drive destinations such as Cairns, the Gold Coast and Maroochydore also popular.

"It's typically advised to avoid picking up vehicles at major airports as it can be more expensive," says Finch.

"But Wotif.com data indicates from January-March this year, renting your car from the airport was actually more cost-effective – approximately 15 per cent cheaper."

An excellent hack to both secure a car and get a sweet deal, is to consider packages.

"If you're flying or booking accommodation as part of your trip, it's worth considering a package. Bundling your car hire with flights and/or accommodation in one package ... can give you access to great savings not available when you book separately."

Shop around with the likes of Qantas Holidays, Flight Centre and Discover Australia, which has a heap of self-drive all-inclusive packages. Or check with a travel agent.

Even in this new environment, though, the old rules remain.

Round trip hire will always be cheaper than point-to-point, for starters.

"While most car rental suppliers offer both options, the reason point-to-point car hire can be more expensive is that there is often a fee that comes with the flexibility of being able to drop off your car at a different location from where you originally picked it up," says Finch.

You should always fill up the fuel tank before you return the car – it is way cheaper than having the hire company do it. (And note whether the car is diesel or petrol – putting in the wrong fuel is a whole other world of cost pain.)

Look out for additional driver fees. If you are sharing the driving, this will apply. But the cost varies from company to company, so it's worth looking around. If an additional driver is under 25 a surcharge may apply.

Watch out for insurance costs. Travel insurance coverage may work out cheaper than the insurance spruiked by the hire company.

Always inspect the car fully before driving away and use that graphic in the hire documents to note where any damage is – and if there is damage, it might be worth asking for another vehicle. Take photos of all sides and inside the car to document its condition at pick up but also before drop-off. Things can happen when you've walked away.

And keep your car clean – you might be slugged a cleaning fee if snacks have been munched unfettered en route.

And finally, note that not all hire car companies are pet friendly and even if they are, you may be liable for a detailing fee if the car is returned full of Fido fur. Check the Ts&Cs.

with Michael Gebicki