Panama City Car Rental

Reasons to book a car rental in and around Panama City

Renting a car in Panama City offers the freedom and flexibility to explore the area at your own pace. This is especially beneficial for visitors who want to take advantage of the city's attractions and nearby destinations. With a rental car, you can easily visit the Panama City Marina for outdoor beach experiences, or take a short drive to St. Andrews State Park, located just 8 km away, to enjoy stunning scenery and adventure activities. Families will appreciate the convenience of visiting Oakland Terrace Park, which provides a lovely urban setting for outdoor fun within the city.

A rental car also allows you to discover popular neighbourhoods like Lower Grand Lagoon and Upper Grand Lagoon, both within 9 km and 8 km from Panama City, respectively. These areas feature beautiful beaches, marinas, and various attractions such as Ripley's Believe It or Not. Exploring the city and its surroundings becomes hassle-free with the ability to manage your luggage easily and create flexible travel plans, making it an ideal choice for tourists seeking a city-themed, beach, or family-related experience.

Most popular car rentals in Panama City

• Midsize SUV: This car type is a popular choice for those visiting Panama City, accommodating up to 5 travellers with space for 3 large suitcases. Midsize SUVs are ideal for families, couples, or small groups who appreciate the combination of comfort and capacity. They offer the freedom to explore various attractions at your own pace while providing ample room for your luggage.
• Standard SUV: Perfect for couples, families, or groups, standard SUVs can comfortably fit 5 travellers with space for up to 2 medium suitcases. This option is great for those looking for a balance between size and flexibility, allowing you to navigate the roads of Panama City with ease while ensuring you have enough room for your belongings during your journey.
• Fullsize: The fullsize car option is well-suited for families and groups, accommodating up to 5 travellers with room for 3 large suitcases or 5 medium suitcases. If you need extra space for your luggage or prefer a more spacious ride, a fullsize car is an excellent choice. It delivers the comfort and capacity required for a memorable trip around Panama City, making it easy to manage your travel plans.

Top rated car suppliers in Panama City

• Dollar Rent A Car: With 2 rental locations in Panama City, Dollar Rent A Car is a popular choice among travellers. This supplier is known for its reliable service and offers a great selection of vehicles. The most booked cars with Dollar are Midsize SUVs and Compact SUVs, which are perfect for navigating the city's attractions and enjoying the surrounding areas at your own pace.
• Budget: Budget operates 1 rental location in Panama City, providing a convenient option for those looking to rent a vehicle. Known for its competitive pricing, Budget's most popular rentals include Midsize and Standard SUVs, ideal for families or groups wanting to explore the region comfortably and efficiently.
• Hertz: Hertz has 1 rental location in Panama City and is renowned for its quality fleet and customer service. The most frequently booked vehicles from Hertz are Midsize SUVs and Fullsize cars, making it a suitable choice for travellers needing a spacious and reliable vehicle for their adventures around the city and beyond.

Where to stay in and around Panama City

• Lower Grand Lagoon: Located 9 km from Panama City, Lower Grand Lagoon is an appealing neighbourhood for those seeking a beach and family experience. Visitors can enjoy activities at nearby Panama City Beaches, perfect for a beach holiday, and explore the natural beauty of St. Andrews State Park, ideal for outdoor adventures. The area is also home to Ripley's Believe It or Not, a unique museum that adds a cultural touch to your stay. With shopping areas and various food options, including wineries and breweries, Lower Grand Lagoon offers a well-rounded experience.
• Upper Grand Lagoon: Situated 8 km from Panama City, Upper Grand Lagoon is a vibrant village known for its outdoor and beach experiences. Key attractions include Capt. Anderson's Marina, which caters to adventure seekers, and the scenic St. Andrews State Park, perfect for outdoor enthusiasts. Thomas Drive is a popular street offering a taste of city life. In addition, Upper Grand Lagoon features shopping centres and recreational areas, along with local wineries and breweries, making it a delightful spot for visitors looking to enjoy a mix of activities and relaxation.
• Bay VIew Addition: Located around Panama City, Bay View Addition is a charming neighbourhood that offers a blend of outdoor and beach experiences, making it ideal for those seeking scenic beauty. Key highlights include the stunning St. Andrews State Park, perfect for outdoor activities, and the Panama City Marina, which caters to adventure seekers. Thomas Drive also runs through this area, providing access to the city. With recreational areas and shopping centres nearby, Bay View Addition is a great base for exploring the local attractions while enjoying the peaceful bay views.

10 tips to save on your car rental in and around Panama City

1. Use filters to find the right car: Refine your search by vehicle type and features. Whether you're looking for an SUV for added space, a convertible for summer drives, or an economical car for budget-friendliness, utilise the filters on Expedia to discover the ideal match for your journey.
2. Book in advance to help lower costs: Rental prices can vary based on demand, so it’s advisable to secure your vehicle well ahead of your trip. By booking early, you are more likely to access lower rates and better availability, especially during peak travel seasons.
3. Consider a smaller car for savings: Smaller vehicles are typically more affordable to rent and easier to navigate in crowded areas. Mid-size rentals offer a solid balance of cost, comfort, and fuel efficiency.
4. Age guidelines: Drivers under 30 may encounter higher deposits or daily surcharges, and certain vehicle categories—such as SUVs or premium models—might not be available. This can also apply to renters over 70 years old. Always verify the age restrictions before finalising your booking.
5. Check fuel policies: Some rentals operate under a full-to-full fuel policy, which means you must return the car with a full tank to avoid extra fees. This is generally the most beneficial option. Others may offer full-to-empty or prepaid refuelling options, which are acceptable as well; just ensure that the tank is empty upon return in this scenario.
6. Save on city and airport pickups: Picking up your rental car at airports often incurs a surcharge, but the convenience may justify the additional cost.
7. Know your payment options: Many car rental companies exclusively accept credit cards for payment.
8. Understand your insurance coverage: Car rental insurance can prevent unnecessary expenses and provide peace of mind in case something unexpected occurs during your trip. It’s easy to add rental insurance when booking through Expedia.
9. Consider unlimited mileage: If you plan on taking long road trips, look for rentals that offer unlimited mileage to avoid incurring additional charges.
10. Bring your driver's license and ID: A valid driver's license is necessary to rent a vehicle.

Best time to rent a car in and around Panama City

The best value period to rent a car in and around Panama City is January, when prices are slightly low despite moderately high demand. February also offers similar pricing but with increased demand. For those looking at shoulder periods, March through May sees average prices and moderate demand, making it a good option as well. However, July is the most expensive month for rentals, despite its moderately low demand, making it a period to approach with caution.