Best Queenstown Car Rental for Your Epic NZ Trip

Queenstown is affectionately known as the Adventure Capital of the World, and one visit to this famous region will quickly show you why. Set against the dramatic Southern Alps and along the shores of Lake Wakatipu, the town is well-loved for its extreme sports and outdoor recreation. 

Renting your own car is one of the best ways to explore this showstopping region, allowing you to reach beautiful hiking trails, dazzling lakes, and remote, hidden beaches. The good news is that there are plenty of Queenstown car rental companies ready to match you with the perfect set of vacation wheels. 

Interested in New Zealand’s North Island too? Here’s a guide to New Zealand’s Natural North Island

Driving Requirements

To rent a car in New Zealand, you must be at least 21 years old, although most companies require drivers to be 25 or older. In some cases, you may be charged a young driver’s fee if you fall between 21 and 25, but every company is different, so it is important to read the fine print and ask questions before you make a booking. 

International tourists are legally allowed to drive for up to 12 months on a valid license from their home country. However, if your license is not in English, you will either need to obtain an official translation or an international driving permit (IDP) before arriving in the country. 

4WD vs Standard Cars

Out of all the places in New Zealand, renting a 4WD in Queenstown is a fantastic option. Due to the many steep and winding roads, you will likely feel more confident tackling these unfamiliar roads in a powerful 4WD. Additionally, due to its very southern location, Queenstown often receives decent snowfall and icy conditions in its mountainous regions during winter, making a 4WD the appropriate vehicle to tackle these hazardous conditions. 

It is important to remember that a 4WD will be more expensive to rent than a standard car, and if you are planning to stay mainly in and around the city centre, most of the roads you will encounter can be safely navigated in a regular vehicle.

Insurance & Deposits

By law, all car rental companies in New Zealand must include insurance as part of a car rental package. This basic insurance typically covers only the minimum requirements to drive in the country. While you can choose to stick with this basic coverage, should you get into an accident, you will likely be charged the entire deposit. A fantastic way to save money on your rental is by checking with your credit card or travel insurance policy for extra insurance that covers rental cars. If this is not included, consider purchasing additional insurance to add protection. 

Additionally, it is standard for all car rentals in Queenstown to charge a security deposit. This price will vary based on their insurance deductible, but a typical figure is around $200 NZD. 

Once the vehicle is safely returned, you will get your deposit back. Because it is easier to refund the charge to a credit card, most companies prefer you to rent with a credit card. However, it is possible to find businesses that accept cash or debit cards. 

Must-See Locations

With a rental car at your disposal, there are plenty of beautiful locations to visit in and around Queenstown, allowing you to experience the best this region has to offer. 

Milford Sound

Arguably, one of the best road trips you can take on the South Island is the iconic scenic route from Queenstown to Milford Sound, a 179-mile trip. Milford Sound is one of the most famous locations in the entire country, and this picturesque fiord draws in nearly 1 million tourists every year. 

The best way to take in all the sights and sounds is via a nature cruise on Milford Sound. A trip along the water allows you to get up close and personal with cascading waterfalls and the native wildlife, like elusive Fiordland penguins and dolphins. Most cruises last 2-2.5 hours, but you can opt for an overnight cruise to maximise your time in this spectacular location. 

Arrowtown

Located just 20 minutes outside of Queenstown, you will find one of the most beautiful towns in New Zealand. Arrowtown is a historic gold mining town in Otago on the South Island, boasting beautiful mining-era architecture, scenic walkways, and dreamy cafes. 

The Arrowtown Chinese Settlement, found a short walk from Buckingham Street, contains a row of small, traditional mining huts that once housed Chinese miners. These historical buildings give fantastic insight into what life was like for these miners back in the day. 

Alternatively, you can stretch your legs by embarking on a short nature hike up German Hill known as the Sawpit Gully Track. This short 5-mile hike is just long enough to get you out into the beautiful natural surroundings without taking up a full day. 

Gibbston Valley

Gibbston Valley is a world-renowned New Zealand wine region, best known for its delicious Pinot Noir. This wine-growing region is both the highest and coldest area in Central Otago, with most of the ground sloping towards the north, ensuring the vines receive plenty of healthy sunlight. These conditions combine to create the ideal environment for growing delicious, iconic wine varieties. 

If you want to sample a range of delicious wines without having to worry about being the designated driver, join a Queenstown wine tour. Not only will you be able to visit some of the best wineries in the valley, but you will also get the chance to explore the inside of the oldest wine cave in the country.