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Renting a Car in Funchal, Madeira: My Complete Travel Guide

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Funchal, the charming capital of Madeira, is one of those places that captures you instantly—lush green mountains, dramatic cliffs, and cozy cobblestone streets all wrapped in a warm Atlantic breeze. I’ve visited Funchal a few times now, and if there’s one thing I always recommend to fellow travelers, it’s this: rent a car.

Whether you're planning to take in the views from Cabo Girão, explore the stunning Curral das Freiras, or just want to meander through scenic coastlines at your own pace, car rental in Funchal offers freedom and flexibility that public transport simply can’t match.

During my last trip, I used DiscoverCars to compare deals—it made the booking process a breeze and helped me save extra hours of browsing through individual websites. 

Why Rent a Car in Funchal? 

car hire Funchal airport
Car Hire Funchal airport

If you, like me, love the freedom to explore at your own pace, then renting a car in Funchal is a no-brainer. While Madeira’s public transportation does a decent job covering the main towns, it just doesn’t cut it when you’re trying to reach the island’s more remote, awe-inspiring spots—like the levada walks in Rabaçal or the charming, thatched houses of Santana.

I remember one morning, I set out from Funchal at 5 AM to catch the sunrise at Pico do Arieiro—an unforgettable experience that simply wouldn’t be possible without my own set of wheels.

With a rental car, you're not tied to crowded tour buses or rigid timetables. You can stop for spontaneous views, detour to lesser-known beaches, or find that perfect picnic spot in the mountains. Self-driving in Funchal means turning your trip into your own adventure.

And let’s not forget the convenience—with a rental car, airport transfers are smoother, and if you’re traveling with family or friends, it's often more cost-effective than multiple taxis.

If you’re planning a Madeira road trip, starting in Funchal puts you in the driver’s seat—literally and figuratively—for an unforgettable journey.

Top Car Rental Companies in Funchal

I’ve rented from several companies in Funchal over the years, and here’s my breakdown of the best car rental companies in Funchal:

  • Sixt – Great for premium vehicles and newer models. Their customer service is excellent, but prices can be higher, especially in high season.
  • Europcar – Reliable and with a large fleet. I’ve found them easy to deal with, especially for Funchal airport car rental.
  • Guerin – A solid mid-range option. Good for compact and SUV choices at decent prices.
  • Local Rent – Perfect if you want to avoid deposits or credit card holds. Many local companies work through this platform with flexible conditions.

Airport pickups tend to be the most convenient, especially if you land late. However, if you're spending your first day in the city, you might save money by picking up your rental from a city-center location instead.

Pro tip: I always compare these options on DiscoverCars, which pulls rates from all major providers and helps me find the best value (and reviews) in one place.

Types of Cars Available for Rent

Madeira’s terrain is no joke—steep hills, hairpin turns, and narrow roads. So picking the right vehicle is key. Here are the most common options to go for when traveling in Madeira: 

  • Compact cars (e.g., Fiat 500, Renault Clio): Ideal for driving around Funchal’s tight city streets. Great fuel economy too.
  • SUVs (e.g., Nissan Qashqai, Dacia Duster): My go-to choice for mountain drives or when heading to places like Pico Ruivo or Paul da Serra.
  • Convertibles: Perfect for those sunny coastal days. I once rented a little convertible and drove from Funchal to Ponta do Sol—pure joy!
  • Electric and hybrid cars: Becoming more common in Funchal car rental fleets. The island is expanding its charging network, especially around hotels and tourist hubs.

If you're unsure about the best car for Madeira roads, think about where you're headed. City-based? Go compact. Exploring the mountains? Definitely an SUV.

Cost of Renting a Car in Funchal 

Generally, car rental prices in Funchal range from €25 to €60 per day, depending on the season, vehicle type, and booking duration.

In summer and around Christmas, expect to pay at the higher end unless you book early. Insurance, additional drivers, GPS units, and child seats can also raise your cost. I always check if CDW (Collision Damage Waiver) and theft protection are included—they often are on platforms like DiscoverCars.

Here are a few money-saving tips:

  • Book in advance: Especially for high season.
  • Compare providers: Use a comparison tool to spot deals and avoid overpaying.
  • Pick up away from the airport: City-center locations sometimes offer lower rates.
  • Go for weekly rates: Longer rentals often get discounted daily rates.

Whether you’re looking for cheap car hire in Madeira or want a luxury ride, there’s a price point for everyone.

Driving in Funchal: Tips & Rules 

car hire Funchal
Driving in Funchal

Driving in Funchal is an adventure in itself. The roads are well-maintained but steep and winding, especially in older neighborhoods and mountain routes.

Here are my top tips:

  • Drive an automatic if you're not 100% confident with hill starts. Many streets are practically vertical!
  • Use GPS or apps like Google Maps, but keep an eye out—some routes are overly ambitious.
  • Parking: In central Funchal, paid zones are common. Use apps like EasyPark or park at your hotel if available. There are some underground garages near the marina too.
  • Speed limits: Generally 50 km/h in urban areas, 90 km/h outside cities.
  • Tolls: Madeira uses the Via Verde system, but there are very few toll roads on the island. Most rental cars come equipped with a transponder.
  • Alcohol limit: The legal limit is 0.5 g/l. Better to skip the poncha if you're driving.
  • Fuel stations are widely available but may close early in remote areas.

As long as you take it slow and stay aware, driving in Funchal Madeira is a rewarding experience that opens the entire island up for exploration.

Must-Visit Places Accessible by Car 

Funchal nearby cities
Funchal nearby cities

Renting a car in Funchal unlocks some of Madeira’s most unforgettable spots. Here are a few of my personal favorites:

  • Cabo Girão Skywalk (20 mins west): One of the highest cliffs in Europe, with a thrilling glass platform. Sunset views here are incredible.
  • Pico do Arieiro (45 mins): A dramatic mountain peak. Drive up early for sunrise and you might catch a sea of clouds below you—absolutely magical.
  • Curral das Freiras (30 mins): Nestled in a volcanic valley, this “Nuns' Valley” is surrounded by towering cliffs. The road up is steep, but the views are worth it.
  • Porto Moniz (1.5 hrs): Known for its natural volcanic pools, this northern town is perfect for a refreshing dip after a long drive.
  • Santana (40 mins): Home to the island’s iconic thatched A-frame houses. It’s a charming town with great traditional food and mountain air.

These are just a few of the many Funchal day trips by car you can enjoy. Honestly, half the fun is getting there—scenic drives in Madeira are part of the journey. 

How to Book a Car Rental in Funchal 

Booking your Funchal car hire is super easy if you plan ahead. Here’s my usual process:

  1. Compare prices online – I use platforms like DiscoverCars and Kayak. DiscoverCars, in particular, has saved me a lot of time and money by showing transparent pricing and reviews.
  2. Check insurance options – Make sure CDW and theft protection are included, or purchase coverage separately.
  3. Choose pickup location – I often pick up at the airport, but city-center pickups work well too.
  4. Book early – If you’re traveling in summer or around Christmas, vehicles sell out fast.
  5. Confirm deposit and payment methods – Some local providers allow debit cards, which is great if you’re not traveling with a credit card.

If you're planning a last-minute car rental in Madeira, don’t worry—there are often deals available if you're flexible. 

Conclusion 

If you really want to explore Madeira by car, Funchal is the perfect place to begin. Renting a car gave me the flexibility to chase waterfalls, scale mountain peaks, and uncover hidden seaside villages—all at my own pace.

Whether you're planning a romantic getaway, a hiking adventure, or a family holiday, the right rental makes all the difference.

Compare your options on DiscoverCars, grab the keys, and hit the road. Trust me—you won’t regret it.

Frequently Asked Questions

Here you will find the most frequently asked questions, so you don't have to look anywhere else for the right answers.

Not exactly! Actually, it depends on where you are traveling. The roads are well-maintained and road signs are easy to read. However, if you are going to drive on extremely steep roads then just ensure that you rent a car with enough power. Other than that, driving on the mountainous area as well as tunnels that are frequently visited by tourists is easy.

If you are charged with a traffic offense such as speeding, parking the car in a non-parking area, using a phone while driving, skipping a red light, etc. then you need to pay the fine in spite of driving a rented car. During such circumstances, the car rental company may also add an additional fee at the time of returning the vehicle. However, if you are being penalized for an expired vehicle inspection then it is the car rental company who is responsible to pay the fine.

As on 22 June 2022, the average price of Diesel is Euros 2.085/l and Unleaded 95 petrol is Euros 2.200/l.

The prices starts just from 3$ a day which is absolutely cheap compared to other destinations. However the average price is about 20$/day and it is still considered pretty cheap.

In motorways, the speed is 120 KM/H (74 MPH), 80 KM/H on the main roads it’s like in the most Europe countries, 50 KM/H in built-up areas, and 25 KM/H on school roads.

It’s absolutely a great idea to rent a car in Funchal. By doing this you’ll be able to explore the whole island conveniently.

There is Europcar, Alamo, Enterprise, MasterKings, Avis, Budget, Centauro and Sixt. However, you can also find others just a few kilometers away. They usually offer a free pickup.

Aistis

My name is Aistis, I am a 32 from Lithuania. I started traveling 12 years ago when I took one of my first trips with Erasmus+ programs. My goal is to see the world and share the experience with my readers.

Currently, I’ve been to 51 Countries and still counting. I hope you’ll enjoy reading my content and car rental tips as well as comparisons and who knows maybe we will meet somewhere in the near future.
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