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Which part of Lisbon? Car rental

We'll be in Lisbon for about 2 days (in June) before heading out to explore other areas. Is there a particular area of Lisbon that you would recommend for a more "authentic feel". We're more interested in Pousadas, guesthouses, airbnb than large more generic hotels. We also really enjoy restaurants frequented by locals.

Also any car rental agencies recommendations? Or ones to avoid?

Thanks!

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