Best Cheap Rental Companies in Portugal

The funny thing is, cheap car rental in Portugal can be genuinely affordable—sometimes shockingly so. You’ll see prices that make you wonder if a car is cheaper than a souvenir magnet. But there’s a catch, and it’s the same catch almost everywhere in Europe: the cheapest daily rate isn’t always the cheapest rental.

If you’re searching for the best cheap rental companies in Portugal, what you really want is this:

• Companies that are actually budget-friendly (not just “cheap on the first screen”)
• A pickup experience that won’t steal half your day
• Clear rules about deposits, excess, insurance, fuel policy, and tolls
• Reasonable support if something goes sideways

This guide is written like I’d explain it to a friend planning a Portugal trip—practical, a little opinionated, and focused on saving you money without turning your holiday into a negotiation marathon at the rental desk.

Before we talk companies: what “cheap” really means in Portugal

Portugal has several major rental hubs:

• Lisbon Airport (LIS)
• Porto Airport (OPO)
• Faro Airport (FAO) for the Algarve
• Madeira (FNC) and Azores (PDL) if you’re island-hopping

Prices can swing wildly by season. In shoulder months, you can score great deals; in summer, availability gets tight and “cheap” becomes relative.

Also, the cheapest companies are often low-cost specialists. They can be great—if you know what to expect. Typically, the trade-off is one (or more) of the following:

•  Bigger deposit holds without added coverage
• Strict card requirements
• Upsell-heavy counters
• Shuttle buses instead of on-terminal desks
• Very tight rules about fuel, scratches, and timing

That doesn’t mean you should avoid them. It just means you should treat the booking like a small mission: clarity first, price second.

Best cheap rental companies in Portugal (with real pros & cons)

Below are the companies I’d actually consider if my goal was to keep costs down while staying sane—especially in Lisbon, Porto, and Faro.

1) Guerin (local Portuguese brand)

Why travelers like it: Guerin is one of the most recognizable local names in Portugal, and it often hits a sweet spot: not always the absolute cheapest, but frequently excellent value with a more “normal” rental experience than ultra-budget operators.

Best for: Lisbon/Porto/Faro airport pickups, travelers who want a local company that still feels established.

Pros

• Strong local presence and familiarity with Portugal routes
• Often competitive pricing without being the most extreme budget model
• Can be a good middle ground between cheap and smooth

Cons

• Like any brand, experiences can vary by location and season
• Deposits/coverage rules still matter—don’t skip the terms

2) Drive on Holidays (Portugal-focused, airport popular)

Drive on Holidays pops up constantly for Portugal, especially for airport rentals. Many travelers choose it because it’s commonly priced well while still feeling like a proper operation.

Best for: Faro (Algarve) and other airport pickups where you want value without going “too barebones.”

Pros

• Often strong price-to-service balance
• Widely used in major tourist routes
• Competitive for week-long rentals

Cons

• In peak season, pickup lines can be longer (not unique to them)
• Insurance/excess options can change the final “cheapness”

3) Drivalia (value-focused, often competitive)

Drivalia tends to sit in that mid-budget lane: not always the cheapest headline price, but very often a good overall deal—especially if you’re renting for more than a few days.

Best for: Longer rentals (5–10 days), travelers who want budget pricing but slightly more structure.

Pros

• Often solid pricing for longer durations
• Can feel more “mainstream” than super-low-cost outfits
• Availability in major hubs

Cons

• Prices vary by city and season; sometimes not the cheapest in summer
• As always: check deposit and excess conditions

4) Sixt (premium brand that can be cheap sometimes)

Sixt isn’t a “cheap company” by brand identity—but in Portugal, you can occasionally find very competitive rates in shoulder seasons or on certain car classes. And when the price is close, it can be worth paying a little more for a smoother process.

Best for: Travelers who value a more polished counter experience but still want a deal.

Pros

• Often smoother pickup, clearer processes
• Fleet quality can be a notch higher
• Sometimes surprisingly competitive for compact cars

Cons

• Can jump in price in summer
• Add-ons can get pricey quickly

 5) Europcar (reliable, sometimes good value)

Europcar is another brand that isn’t always “cheap,” but if your goal is a low-drama rental and you find a good rate, it can be worth it.

Best for: Business-like rentals, city centers, longer trips where service matters.

Pros

• Broad availability and consistent processes
• Often convenient locations beyond airports
• Strong option if you’re doing one-way within Portugal (depending on deals)

Cons

• Not always the lowest price
• You still need to compare total cost, not just daily rate

6) Hertz / Thrifty / Dollar (good deals appear, especially off-season)

These groups often show up on comparison sites with surprisingly good rates. They’re widely known, and if the conditions fit your situation, they can be a safe choice.

Best for: Travelers who want recognizable brands but still want to shop for bargains.

Pros

• Strong presence at airports
• Sometimes excellent promotional rates
• Support structure can be helpful

Cons

• Cheapest offers may come with stricter conditions
• Counter upsells are common across large brands

7) Avis / Budget (worth checking for “total value”)

Budget is literally in the name, and sometimes it delivers. Like the other big groups, the best approach is to compare total cost and conditions.

Best for: Short-to-mid rentals where you want a familiar brand and reasonable terms.

Pros

• Often convenient desks and locations
• Can have competitive packages
• Sometimes clearer rules than ultra-budget brands

Cons

• Peak season pricing can be high
• Optional add-ons can inflate the bill

8) Goldcar (ultra-budget—cheap if you control the variables)

Goldcar is famous for being cheap. It can absolutely work, and plenty of travelers rent from them without issues. The key is being prepared: know the deposit, the card requirements, the excess, and the fuel policy before you land.

Best for: Price-first travelers who are comfortable reading terms carefully.

Pros

• Often among the lowest prices in Lisbon/Faro/Porto searches
• Lots of availability in tourist hubs
• Great for short rentals if conditions match your setup

Cons

• Upsell pressure can be strong
• Deposit/excess rules can be strict
• The cheapest rate isn’t always cheap after counter changes

9) Centauro (budget specialist—good deals, check logistics)

Centauro is another low-cost name you’ll see a lot in Portugal searches, particularly in the Algarve and other high-tourism areas.

Best for: Deal hunters who don’t mind a slightly more “budget operator” vibe.

Pros

• Frequently competitive pricing
• Often good availability
• Can be great for Algarve routes

Cons

• May involve shuttle logistics depending on location
• Terms matter (deposit, excess, fuel)
• Experiences vary more than premium brands

10) OK Mobility (modern low-cost)

OK Mobility has grown across southern Europe and often appears in Portugal searches with attractive prices.

Best for: Budget travelers who want a modern brand feel and are comparing multiple options.

Pros

• Often competitive rates
• Common in major hubs
• Decent option for city/airport rentals

Cons

• Like other low-cost brands, extras can change the final cost
• Always verify deposit and coverage rules

11) Record Go (another budget contender)

Record Go can show very good pricing on specific dates and routes. If you’re comparing multiple companies, it’s worth including.

Best for: Flexible travelers who can adjust pickup times/dates and grab the best deal.

Pros

• Sometimes excellent deals in comparison results
• Can be strong value on certain weeks

Cons

• Not always available everywhere
• Read conditions carefully—especially deposit and insurance

Compare car rental prices

Here’s the truth: in Portugal, the “best cheap company” changes by week, sometimes by day. Fleet availability, seasonality, and promos make one provider cheaper in Lisbon while another is cheaper in Faro on the same dates.

So my best advice—before you commit—is to compare prices across multiple companies and check the total cost + conditions.

👉 If you want to do that quickly, compare car rental prices here.

(Clicking that should take you to the comparison/booking flow—use it to check multiple providers for Lisbon, Porto, Faro, Madeira, or the Azores.)

How to choose the right “cheap” company for your Portugal route

Now that you’ve got a list, the smarter move is matching the company style to your trip.

If you’re doing Lisbon + Porto with a few day trips

You might not even need a car the whole time. Often, the best “cheap” plan is:

• Explore Lisbon without a car
• Rent for 2–4 days to hit Sintra/Cascais/Óbidos/Nazaré
• Drop it, then do Porto without a car
• Rent again if you’re going to Douro Valley or Braga/Guimarães

In that scenario, prioritize:

• Easy pickup locations
• Reasonable deposit rules
• Quick return process

Bigger brands and strong locals often shine here, but deals can appear anywhere.

If you’re doing Algarve (Faro) road trip 

Algarve is car-friendly and car-useful. You’ll likely drive daily, park often, and squeeze into tight beach lots.

In Algarve rentals, I care more about:

• Excess and coverage clarity (small scratches happen)
• Fuel policy (keep it simple: full-to-full)
• Pickup timing (don’t waste your beach day)

Low-cost brands can be great here—just go in prepared.

If you’re renting on Madeira or the Azores

Island rentals are a different game:

• Availability is tighter
• Automatics can sell out
• Steep roads make power and transmission matter
• “Cheap” sometimes means “book early,” not “hunt later”

On islands, I’d rather have a slightly more reliable setup than chase the cheapest option at the last minute.

The real cost traps (so your “cheap” rental stays cheap)

1) Deposit and card requirements

Some companies require a credit card in the main driver’s name. Others accept debit with restrictions. If your card situation is limited, filter options early—otherwise you’ll get “counter surprises.”

2) Excess (deductible) and insurance upsells

The lowest daily price often comes with a high excess. That can be fine—until you’re parking in Lisbon’s tight streets, or you clip a curb in a Faro parking lot.

Rule of thumb: decide your comfort level before you arrive. If you’re the kind of traveler who doesn’t want to think about scratches, choose a package or provider whose coverage reduces stress.

3) Fuel policy

Always aim for full-to-full unless you have a reason not to. It’s the cleanest math and the least likely to cause headaches.

4) Toll roads in Portugal

Portugal tolling can be confusing for first-timers, especially where electronic tolling is involved. Rental companies often offer toll devices or toll service plans. It can be worth it if your route includes a lot of toll roads—just understand the fees.

5) Pickup logistics (desk vs shuttle)

Sometimes the cheapest deal is off-airport with a shuttle bus. That’s fine if:

• your arrival time is daytime
• you’re not hauling a family and five suitcases
• you’re okay with an extra 30–60 minutes

But if you arrive late, or you just want to get on the road, paying a little more for a desk in the terminal can be worth it.

My quick “cheap rental checklist” for Portugal

I use this mental checklist every time:

• Is the transmission definitely what I need? (automatic if required)
• What’s the deposit hold amount?
• What’s the excess amount?
• Fuel policy full-to-full?
• Is pickup at the airport desk or shuttle?
• Does the pickup time match my flight arrival?
• Do I understand toll handling for my route?

If you can answer those in two minutes, you’re booking like a pro.

Final thoughts: cheap in Portugal is easy—cheap without stress is the goal

Portugal is one of Europe’s best-value places to rent a car, especially outside peak summer weeks. If you choose a company with clear terms and you match it to your route (Lisbon city vs Algarve beaches vs islands), you can have a road trip that feels effortlessly “European” in the best way.

The trick is simple: don’t pick the cheapest headline price—pick the cheapest total experience. And if you do one thing before booking, make it this: compare a few providers for your exact dates and airports.