How to find a cheap car rental deal in Panama
Pick up a cheap rental car in Panama from £7 a day and drive away happy. We do the hard work for you by searching trusted rental companies, helping you find and book the best deal fast.
Longer adventures offer better value, starting at £48 for a weekly rental.
Browse the car rentals in Panama City and stretch your spending power across your trip. It's the most affordable place in Panama to book a ride.
Overall, the most popular city to rent a car in is Panama City.
Check the deals from Hertz during your search. More travellers choose it than any other provider in Panama.
Collect your ride from the airport if you're flying in. Panama City Tocumen International Airport, David Airport and Balboa Airport offer car rental pickup locations either at the terminal or nearby.
You can easily rent a set of wheels in cities including Panama City, David, Rio Hato, Juan Díaz and Colon.
Book a one-way rental and potentially pay less. If a city is running low on vehicles, providers often lower the price to encourage returns there. Choose 'Return car to a different location' to find those cheaper routes.
Planning a multi-week rental? It might be cheaper to book a full month, so try different date combinations to find out what works best.
To avoid extra costs, pick a vehicle with a 'Fair fuel policy.' You start with a full tank and return it full, which means you're only paying for the fuel you use.
Unlimited mileage lets you focus on the journey instead of the odometer. Check for this feature under the 'Policies' filter and cover more ground without added fees.
Best time to book a car rental in Panama
If you want to get the timing right, book about three weeks ahead to grab the best price on a car rental in Panama.
The most affordable month to rent a car is September, with an average rate of £24 a day.
If you want to steer clear of peak pricing, avoid booking in May.
Compare car rental types in Panama
Economy: Living up to its name, this option is designed with value in mind. It pairs some of the cheapest rates around with low fuel consumption to help keep the total spend down. When you'd rather save than splurge, this is the clear winner.
Small: Mini and economy cars fall into this category. Their compact size and manoeuvrability make navigating busy city streets less stressful. And with engines made to use less fuel, they're an obvious choice when you need a cheap rental car in Panama.
Medium: Want more space without going all out? Medium rentals (which include compact and intermediate models) strike the perfect middle ground. They feel right at home on busy city streets, on the highway and just about everywhere in between.
Large: Big adventures call for bigger thinking. Whether you're cruising with the whole crew or heading off on a longer drive, these full-size cars deliver the space you need. Expect generous seating, ample luggage capacity and comfort that holds up over distance.
SUV: Road trips through Panama are a breeze in one of these. The elevated seating position offers a wider view of what's ahead and helps you stay aware of your surroundings. Designed for versatility, they can take you from busy urban streets to more challenging terrain with ease.
Van: This type of car for rent in Panama includes commercial vans and trucks. With ample carrying capacity and practical interior layouts, they're designed to transport bulky items, equipment or larger groups in one go.
Luxury: Hit the road in ultimate style. Combining refined design, modern technology, and performance built for precision and power, these vehicles redefine what a rental experience can be.
Insurance and optional extras
Adding excess insurance to your rental car gives you peace of mind. It protects you from paying a big excess fee in case of a collision or theft. Insurance policies can vary from one provider to another, so check how each one stacks up.
Upgrade your ride with handy extras like a reverse camera and GPS unit. These features can make your drive smoother and more enjoyable when you rent a car in Panama.
Driving in Panama: What you need to know
Check each company's age requirements before booking your rental in Panama. Rules can vary, and added fees or restrictions may apply if you're a younger driver. At the start of your search, just uncheck the 'Driver aged between 25–70' filter and enter your age to browse your options.
If you're going away with the kids, find out if you need to add a car seat to your car rental reservation in Panama. Whether a legal requirement or not, they're always the safest way for little ones to travel.
You'll need to bring a few things when picking up your rental car: a current driver's licence, extra photo ID, and a credit card with enough balance for the deposit. Debit cards are generally not accepted. Any extra must-haves will be shown in your booking.
If you're new to driving in Panama, remember that traffic here keeps to the right side of the road.
Stay within local speed limits of about 45kph (30mph) in urban areas and around 110kph (70mph) on highways. Road signs will show if a different limit applies.
In Panama, the legal blood alcohol concentration (BAC) limit is 0.05%. If you intend to have a couple of drinks, leave the driving to someone else or choose another way to travel.
Where to road trip in Panama?
Panama is easy to explore by car, with major rental hubs in Panama City, David and Chitré, plus airport pickup points like Tocumen International Airport and Enrique Malek International Airport. If you're planning car rental in Panama, these routes show how pickup points, trip lengths and vehicle types vary depending on the terrain, pace and experience you're after.
History and Culture: Panama City to the Azuero Peninsula
Pick up your car in Panama City and head toward the interior, where colonial towns and deep-rooted traditions line the route south. It's well suited to travellers who want a culturally rich drive without pushing long distances on any single day.
Recommended car: Standard sedan or compact car.
Suggested pickup point: Tocumen International Airport.
Good for: History enthusiasts, couples and solo travellers.
Road conditions: Paved highways, well-maintained rural roads.
Best time to go: December to April for dry conditions.
Trip length: Four to six days.
Key stops: Chitré, Parita.
Nature and Wildlife: David to the Highland Forests of the West
Pick up your car in David and drive toward the highland region to the east, where cloud forest and birding stops anchor the route. The drive rewards those who want frequent short stops rather than long daily distances.
Recommended car: Compact SUV.
Suggested pickup point: Enrique Malek International Airport.
Good for: Wildlife watchers, hikers and nature photographers.
Road conditions: Paved roads, steep highland sections, some unpaved access tracks.
Best time to go: December to March for clearer skies.
Trip length: Three to five days.
Key stops: Boquete, Cerro Punta.
Coastal: The Caribbean and Pacific Shores of Central Panama
Pick up your car in Panama City and head toward the central isthmus, where both coastlines sit within a short drive of each other. This route works well for those who want variety without committing to demanding roads or a single stretch of coastline.
Recommended car: Mid-size SUV.
Suggested pickup point: Tocumen International Airport.
Good for: Families, beach travellers and first-time visitors to Panama.
Road conditions: Paved highways, some unpaved coastal access roads.
Best time to go: January to April for calmer Pacific waters.
Trip length: Five to seven days.
Key stops: Portobelo, Pedasí.
Weather and driving conditions in Panama
Weather
Panama runs on two seasons: a dry season from mid-December to mid-April, and a wet season that takes over from mid-April through to mid-December. The Caribbean coast gets rain year-round, so expect some shower activity even during the drier months if you're heading that way.
Heavy rain is the condition you'll notice most when driving in Panama, especially on highland routes where afternoon downpours can reduce visibility fast — slow down and increase your following distance. Fog settles regularly over mountain passes near the western highlands, so use your low-beam headlights and stay alert on curves. Heat builds quickly on low-lying coastal roads, so check your coolant before long drives and pull over if your engine temperature rises.
Driving conditions
The main highways connecting Panama City to the interior and the coasts are well-paved and easy to drive. If your road trip in Panama takes you into rural areas like the Darién or the highlands of Chiriquí, expect unpaved tracks where a 4WD vehicle will serve you much better than a standard car.
Panama City's road network is busy throughout the day, with the corridor connecting the old town to the financial district particularly congested during morning and evening rush hours. Street parking is limited downtown, so paid lots are your most practical option. {NS} Outside the capital, roads narrow considerably, and signage becomes sparse the further you travel toward the Darién region or the Caribbean coast. Gas stations are spaced well apart in remote areas, so it pays to fill up before heading out.
On rural roads near Panama's forested interior and the Darién region, livestock and slower-moving wildlife including sloths and capybaras can wander onto the road, particularly at dawn and dusk.
Complete your road trip with a hotel
Wherever your drive takes you, a good overnight stop can make the whole trip better after a long day on the road. Once you've booked your car rental in Panama, browse the range of hotels in Panama City if you're passing by this major stop. It's also easy to find David accommodation options or check out more places to stay in Bocas Del Toro as you plan the rest of your route.
