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Need advice re: long term car rental in Portugal

We are arriving in Lisbon Dec 30/21 and spending 3 nights. On Jan 2/22 we will be driving to Albufeira for a 6 week stay.

We would like a car there, Albufeira, for day trips and shopping.
After our 6 weeks are up, we plan to spend a week travelling North, again with a rental car, and finally flying back to Canada on February 25th 2022.
My Questions are - we have basically 3 separate parts to this trip.
Should we just rent a car for 2 months straight away? Lisbon Airport being the pick up /and drop off place.
Should we do a shorter term ( 3- 5 days) with a pickup in Lisbon airport, and then drop off at Faro airport. Repeating this on our return trip.
While in Faro, try to rent a vehicle locally for the 6 weeks in the Algarve. I notice a large price difference between the Lisbon car rental companies and the smaller local Faro ones.
Has anyone else had this dilemma?
Thank you in advance.

Posted by
9566 posts

I notice a large price difference between the Lisbon car rental companies and the smaller local Faro ones.

I.e. the Lisbon ones are more expensive?

Posted by
4 posts

Yes, Lisbon is more expensive. I have learned that there are smaller private car rental companies in Faro that will do 1, 2 or 3 month rentals quite inexpensively. I guess I am looking at 2 - short terms rentals in the beginning and end of our stay, with a longer term in the middle.

Posted by
6113 posts

I have always used the consolidator Holiday Autos for my many trips to the Algarve. I am not seeing a difference there between starting at Lisbon airport or starting at Faro airport. There is however about a €120 premium in each direction for a one way car hire.

I have used the multi nationals and local companies over the years. One trip with a (cheap) local supplier wasn’t a success, as I noticed the car had a flat tyre whilst still on the forecourt! We had to wait an hour whilst they took it to a garage to get a replacement. The local companies tend to use much older cars. Last time there, we used Keddy, part of Europcar.

In many parts of Europe, hire cars are in short supply and prices are rising as a result. I would want to ensure that I had a car prebooked for a 6-7 week trip ASAP. Car hire from a local operator in Portugal is less than half of the price I am paying in January for the Canary Islands for a local company.

One issue you may have is that you are starting your rental 2 January, which is still peak season. Pushing the start date back by several days slashes the price with some companies.

Check what insurance is covered with the local companies and the excess should you have an accident.

Posted by
4 posts

Thank you. That's very helpful. In Canada, our credit card company offers insurance but only for 31 days, which is null and void if we take any other insurance on top of that.
I read that many Car Hire companies will offer back to back contracts to circumvent this in the Faro region.
I haven't checked that out yet.

Posted by
6374 posts

Where are you staying? Albufeira or Faro or both? Central locations or somewhere outside?

You don't want a car anywhere near Lisbon, and for the trip to Albufeira it might just be easier to take the train. I don't know how experienced you are with Europe, but I think you might be overestimating the need for a car in Albufeira? How many day trips are you planning? And what kind of shopping are you planning that will require a car?

Posted by
4 posts

We are about half way between Armacao de Pera and Carvoeiro. Not walking distance to Albufeira. I think a car might be helpful for day trips and sightseeing.