Madeira’s main airport is located in Santa Cruz, so when you rent a car in Madeira, you start your trip already connected to the island’s main road network. The island is steep and full of tunnels and viewpoints, so your car choice matters more here than on a flat city break.
Madeira may look small on the map, but it feels “big” when you drive it. You’ll find coastal roads with ocean views, narrow town streets, and mountain roads that climb quickly. That mix is exactly why Madeira is such a great place for a road trip. If you want to explore beyond the capital, you’ll appreciate the freedom that comes when you drive.
If you plan to rent a car in Madeira, the best vehicle isn't always the cheapest. The right choice depends on your route, the number of passengers, and your confidence when driving on steep hills.
If you stay near Funchal and plan lots of towns and short hops, a compact car can be perfect. Madeira’s built-up areas can have narrow lanes, tight corners, and small parking spaces, so a smaller body helps you relax.
You also spend less at the pump. On island drives, you may do many short journeys, and fuel efficiency matters. A smaller engine can be economical, especially if you drive smoothly and avoid rushing uphill. If you do many high-altitude drives with a car, an economy engine may feel slow on steep climbs. It will still get there, but you may climb in lower gears more often.
Madeira is a hill island, so if you do not love clutch work, choose automatic. In steep areas, an automatic transmission reduces the stress of hill starts, stop-and-go traffic, and tight uphill turns. This is especially helpful if you normally drive on flat roads at home. You can focus more on steering lines, mirrors, and road signs. Automatics can be in higher demand on islands, so they often cost more and can sell out sooner. Booking early is the easy fix.
For mountain drives, an SUV’s extra torque (turning power that helps you climb) is better, especially with passengers and luggage. You may also like the higher driving position for sight lines on winding roads.
On Madeira, better visibility helps you spot tight turns, cyclists, and viewpoints you might want to pull into safely. Some scenic stops and side roads can be uneven or have sharper ramps. An SUV with a bit more clearance can reduce scraping, especially if the car is full.
If you plan to rent a car in Madeira as a group, a van can keep everyone together and solve the common problem of limited luggage space. At the airport, several suitcases and day bags can quickly make a five-seat car feel cramped.
For families, vans also make it easier to organise child seats and daily essentials. You can keep the cabin tidy and avoid placing bags in positions that block your rear view. The main compromise is vehicle size. In busy areas and narrow streets, you may need to use larger car parks and walk a little further. This is typical in Madeira’s older districts.
When you rent a car in Madeira, you can easily reach both the south and north sides of the island from the Airport without spending hours on motorways. However, you should still plan for slower sections in the mountains.
The island’s roads rely heavily on tunnels to cross ridges and connect valleys. Some tunnels are more than 3 kilometres long. Road signs are your main guide, as routes often follow the natural shape of the landscape. In Madeira, the shortest distance on the map is not always the simplest or quickest drive.
If you rent a car in Madeira, this is an ideal first drive to help you settle in. The route from Funchal to Câmarade Lobos follows the south coast, offering open-ocean views and a relaxed island pace as you leave the city behind. Câmara de Lobos is one of Madeira’s historic settlements, known for its fishing bay. It feels distinct from the capital, even though it is only a short drive away. Go early or late in the day for easier parking.
The north side is more dramatic, with wetter green areas, big sea views, and sections where you feel the Atlantic power. That is why people remember the cliffs and waterfalls that lie across the road. Your reward is Porto Moniz, famous for its natural swimming pools carved from volcanic rock, with seawater constantly replenishing them.
Pico do Areeiro is one of the most iconic high drives because you can reach the area by road and step out into a true mountain landscape. It sits at an altitude of 1,818 metres, so you should expect cooler air, wind, and fast weather changes. Go gently on the way down. Use a lower gear (or manual mode in an automatic) to control speed and save your brakes. Also, expect curves because this route has tight turns. Stay in your lane, keep a safe speed, and use your mirrors often.
Car rental pricing is made up of the daily rate you see online and the terms and conditions at pick-up, such as deposits and insurance excess. On islands, prices are based on demand, so the same car can cost very different amounts depending on the month and the timing of your booking.
A Madeira airport car rental usually starts at around €40 to €45 per day for a small manual car in quieter periods. Economy and compact cars are commonly priced between €47 and €58 per day, depending on whether you choose a manual or automatic transmission.
If you prefer a compact SUV, expect rates between €63 and €73 per day. Larger 7-seater vehicles are in a much higher range, often €100 to €110+ per day. Daily prices for a car rental typically range from €40 to €110+, depending on the car size and gearbox. Automatics and larger vehicles almost always cost more than small manual cars.
Car rental prices in Madeira are usually lower during quieter months, such as winter, and higher during peak travel periods, especially in summer. Even outside the busiest months, rates can increase on weekends and during school holidays.
Most rentals include a damage waiver with an excess. The excess is the maximum amount you may have to pay if the car is damaged, depending on the contract terms and any exclusions. If you prefer more peace of mind on Madeira’s steep and narrow roads, you can choose extra cover to reduce the excess.
Check what is not included, such as tyres, glass, and underbody damage. You should also remember the security deposit. This amount is blocked on your card during the rental period, which means you cannot use those funds until the car is returned.
Madeira is a destination with steep climbs, frequent bends, and tunnels. If you match your car to your plan, you reduce stress and increase safety, especially on mountain routes like Pico do Areeiro and Encumeada.
Rent a car in Madeira with Final Rentals to explore the island with comfort and confidence. Select Madeira Airport as your pickup location, enter your travel dates, and choose a vehicle for your trip. Book and manage your car rental at any time. Download the Final Rentals app on Google Play and the App Store.
If you have a driver’s license from the USA or Canada, it is valid in Madeira. You do not need an international driving permit (IDP) to rent a car. You must always carry your driver’s license and ID when driving. Some travellers choose to bring an IDP as a translation of their license. While it is not required to rent a car, the police may ask for an international license if you are pulled over or involved in an accident.
Pay attention to how the insurance is set up and your excess. The excess is the maximum amount you would have to pay if the car is damaged. You can usually lower this amount by paying for extra protection.
If you do not like hill starts, an automatic car can make your trip much calmer on steep streets and sharp bends. It can cost more and sell out faster, so booking ahead helps.
