Overview

Landing in a new city and picking up a hire car is one thing. Figuring out how to drive it around for the first time? That’s where this guide comes in.

Melbourne’s not a hard place to drive in, but it does have a few quirks. If you’re visiting from overseas or interstate, most driver’s licence holders can drive without needing to sit a driving test in Australia. That part’s easy. It’s the road rules, local habits and small things, like when to give way, hook turns, or how toll roads work, that can take a moment to get used to.

So, before you fire up the GPS or head out on a road trip, take five minutes here first. We’ll walk you through what to expect, what to watch for, and where to head once you’re feeling comfortable behind the wheel.

What’s an Easy Way To Book a Rental Car in Melbourne?

Start with the easy part: book your hire car online through the Melbourne Airport Car Rentals page before you fly in. That way, it’s ready when you arrive—no running around, no backtracking into the city just to collect it.

Booking online gives you access to real-time availability across all six providers. You can compare rates, choose the vehicle that fits your plans, and book with no cancellation or booking fees. Here’s who you’ll find at Melbourne Airport:

  • Avis – Sedans, SUVs and family-sized options
  • Budget – Compact models with good value for shorter stays
  • Europcar – Hatchbacks, seven-seaters and vans
  • Hertz – Reliable all-rounders and reward program perks
  • Redspot – No-fuss vehicles, often with toll cover included
  • Sixt – Modern cars with built-in tech like Bluetooth and navigation

At Melbourne Airport, you’ll find all six car rental firms onsite right on the Ground Floor of the T123 car park, opposite Terminals 1, 2, and 3. It’s an easy walk from any terminal, so once you’ve picked up your bags, you’re only a few minutes from getting on the road.

You just need to present a credit card in the main renter’s name and a valid driver’s licence when you collect the car. Most overseas licence holders can drive in Victoria without converting to a Victorian licence, as long as the licence is current, in English (or officially translated), and matches the name on your booking. If you’ll be staying in Victoria for more than six months, you’ll need to convert to a Victorian licence.

Is It Easy To Drive in Melbourne?

consistent, and if you’ve driven in other parts of Australia, most of it will feel familiar. That said, Melbourne does a few things its own way, so a few quick driving tips go a long way here, especially if it’s your first time.

Driving Melbourne CBD’s Grid Layout

Melbourne City is built on a grid, which means streets run north–south and east–west. But like any city, driving through it takes a bit of focus, especially in pockets where cars, cyclists, scooters, trams and people all move at once.

If you do miss a turn, no stress. The grid makes it easy to circle the block and try again without adding much time to your trip. You won’t come across many roundabouts, but they’re common as you head out into nearby suburbs.

Yes, Trams Have Right of Way

It feels different at first, but you’ll see tram lines running through much of Melbourne’s inner city, often right down the centre of the road. They move with traffic, and you must give way to them when they’re turning, pulling out from the left, or moving through shared intersections.

If one stops in the middle of the road to let passengers on or off, you’ll need to stop and wait. Don’t overtake unless there’s a safety zone or platform between the tram and the footpath. These tram stops are usually marked by a yellow “Keep Clear” zone or designated signage.

Tram-only lanes are clearly signed and may be separated by solid yellow lines. Don’t enter these lanes unless the signs allow it, and only cross them if you’re turning or parking. Keep an eye out for turn arrows and painted lane guides. They’ll help you stay in the right spot.

Turning Right, the Melbourne Way

You might come across something called a hook turn while driving through the CBD. It’s a right turn that starts from the far-left lane and one that’s unique to Melbourne. They are used to keep traffic and trams moving through major intersections, and you’ll only need to do one where the signs say so.

Here’s how to turn right the Melbourne way:

  • Stay in the far-left lane as you approach the intersection.
  • Pull forward to the left side of the intersection when your light turns green.
  • Wait near the crossing, keeping clear of pedestrians and through traffic.
  • When the light for the street you’re turning into turns green, make your turn.

The traffic lights are timed for it, so you’ll know exactly when to go. No need to rush. Other drivers will be doing the same thing, and after one or two, it starts to feel pretty normal.

Where You Can (and Probably Can’t) Park

Parking in Melbourne City can be tricky if you’re not used to it. Time limits change across the day, and many spots turn into clearways during peak hours. Street signs will tell you what’s allowed. Just be sure to check them before walking away.

There are plenty of paid car park garages around the CBD if you’d rather not chance it on the street. They’re easier if you’re planning to stay a while or don’t want to keep circling.

What Time Is Peak Hour Traffic in Melbourne?

Peak times in Melbourne tend to follow the usual rhythm—early mornings and late afternoons on weekdays. You’ll notice the build-up from around 7 AM to 9 AM, and again from 4 PM to 6:30 PM, especially on major roads heading in or out of the CBD.

Some streets also get busy around school zones, usually from 8 AM to 9 AM and 2:30 PM to 4 PM. These areas often have reduced speed limits during pick-up and drop-off times, so it’s worth keeping an eye on signs if you're passing through.

Do I Need GPS or Navigation Apps?

It definitely helps. If you’re not familiar with Melbourne’s road layout, a GPS or map app takes a lot of the guesswork out of driving, especially through the CBD, where turns come fast and lane signs don’t always give you much time.

You’ll find that most locals use their mobile phones to get around, and you can too. Or, if you’d rather keep things simple, most car hire companies at Melbourne Airport offer GPS units as an add-on when you book.

How To Pay For Toll Roads in Melbourne?

Melbourne’s toll roads don’t use cash or toll booths. Everything’s electronic. You’ll drive under a gantry, your number plate gets scanned, and the charge is logged automatically. The two main toll roads are Citylink and Eastlink.

  • Citylink connects Melbourne Airport to the CBD and runs through key parts of the city.
  • Eastlink covers the eastern and south-eastern suburbs and is useful if you're heading out that way for a day trip.

If you're in a rental car, there's no need to set anything up yourself. Most car hire companies will handle tolls for you, either as part of your daily rate or charged afterwards. Just double-check how it works when you pick up the car, so you know what to expect.

Where To Go Outside Melbourne

Got a few days up your sleeve? Once you’ve found your feet in the city, a short trip out of town is a great way to see a different side of Victoria. With a rental, you get the flexibility to set your own pace, and the freeways leading out of Melbourne make it easy to get going.

Here are a few places worth adding to your list:

  • The Great Ocean Road – Coastal towns, winding clifftops and beaches all the way to the Twelve Apostles
  • Yarra Valley – Open countryside, cellar doors and easy back roads just outside the city
  • Dandenong Ranges – Forest walks, hilltop cafés and scenic winding drives
  • Mornington Peninsula – Beaches, local markets, hot springs and plenty of places to stop along the way
  • Daylesford – Known for slow weekends, food, spas and lake views

If you’re planning a road trip across Australia, the same car hire companies at Melbourne Airport offer one-way rentals. You can drop off the car in a different location in Sydney, Adelaide and other major cities and keep going without having to loop back.

From the Airport and On to the Open Road

There’s a lot to see out there, and now you’ve got the freedom to take your time with it. From the city’s edge to the coast, from laneways to wide open roads, Melbourne is one of those places that rewards not just the destination but also the drive.

You’ve already handled the practical side. What’s next is entirely up to you, whether that’s a few days in the hills, an afternoon by the beach, or a turn through the CBD just to get your bearings. Wherever you're heading, you're starting in the right spot.