Driving is one of the best ways to see New Zealand
Excellent road network, shorter distances with remarkable scenery, validity of Indian Driving Licence(in English) for a year, and left hand drive makes renting a car an attractive proposition. I rented an SUV in Auckland and surrendered that in Wellington. Rented a Sedan again in Queenstown and surrendered in Greymouth railway station. It is ideal if the pick and drop points are the same but I guess that is not always possible.
Get familiar with traffic signs beforehand
I also made sure I read through the traffic rules and some of the signages that we don’t see in India before departure. Fines for breaking traffic rules are quite stiff and if you are driving a rented car, the agency will simply debit your credit card account for unpaid dues. In Wellington, I parked in front of the hotel just to go in and enquire about hotel parking and I knew parking was not allowed there. By the time I returned in a few minutes, a parking ticket for $40 was stuck on the windshield! However, I could file for a review which I did online, explaining the circumstances and the Authorities graciously waived the fine.
Another issue one can face is finding parking in touristy places, apart from bigger towns. Example, Paihia was overflowing as I went there on a Sunday. Also one needs to be careful at intersections. Make sure you are on the correct lane when you get to the intersection. Don’t try and change lanes at the intersections.
Many of the roads outside the towns can be quite narrow and curvy in mountainous areas, there are bridges which allows only one vehicle to pass through at a time. Important to understand who has the priority. But by and large, you will not encounter too many vehicles and hence it may not be much of a problem!
Car rentals are reasonable
Car rentals vary depending on the make, season and demand. A NZ$50 per day in off season can double during season. The rates also vary depending on drop point selected. One way fee is normally charged if the drop point is not the same as the pick up point. Generally, cheaper options will be available but I always prefer to go to a reputed company(Avis, Europecar, Hertz). They charge more but the vehicles would always be in a good condition. Do also pay particular attention to the insurance exclusions and excess amount. It may be possible to take a more comprehensive cover or reducing the excess by paying more.
On an average, be prepared to pay atleast NZ$50 per day for an intermediate sedan/SUV during off season and booking ahead of time.