Car Rentals in Panama City, USA

Reasons to book a car hire in and around Panama City

Renting a car in Panama City provides the freedom and flexibility to explore the city and its surroundings at your own pace. This option is particularly appealing for families, beachgoers, and those seeking a city-themed experience. With a rental car, you can easily manage your luggage and create flexible travel plans, allowing you to visit a variety of attractions without the constraints of public transport.

Key destinations such as Panama City Marina, perfect for outdoor adventures, and Oakland Terrace Park, ideal for family outings, are conveniently located within the city. If you venture slightly further, St. Andrews State Park, just 8 km away, offers stunning scenery and outdoor activities. Additionally, the nearby neighbourhoods of Lower Grand Lagoon and Upper Grand Lagoon, both within 9 km and 8 km respectively, boast attractions like Panama City Beaches and Capt. Anderson's Marina. Having a rental car makes it easy to explore these popular spots while enjoying the convenience of travelling on your own schedule.

Most popular car hires in Panama City

• Midsize SUV: This car type is a popular choice for those travelling with family, couples, or small groups, as it comfortably accommodates up to 5 travellers and allows for up to 3 large suitcases. The midsize SUV offers a perfect balance of space and manoeuvrability, making it ideal for navigating Panama City and its surrounding areas with ease and flexibility.
• Standard SUV: Perfect for couples, families, or groups, the standard SUV accommodates 5 travellers and allows for up to 2 medium suitcases. With ample space and comfort, this option is great for those who want to explore Panama City without feeling cramped. Its versatile design ensures that you can enjoy your journey while having space for luggage and personal items.
• Fullsize: This spacious option is well-suited for families or groups, as it accommodates 5 travellers with the capacity for up to 3 large suitcases or 5 medium suitcases. The fullsize car is an excellent choice for those who require more room for their belongings while travelling around Panama City. Its generous size ensures a comfortable ride, making it ideal for longer journeys or exploring the area with ease.

Top rated car suppliers in Panama City

• Avis: Avis has 1 rental location in Panama City, providing a convenient option for travellers looking to explore the area. They are particularly popular for renting Midsize SUVs and Standard SUVs, perfect for families or groups wanting extra space. Avis is known for its reliable service and a wide selection of vehicles, making it a top choice for visitors.
• Budget: Budget also features 1 rental location in Panama City, offering competitive rates and a selection of vehicles that cater to various needs. Their most booked cars include Midsize SUVs and Fullsize cars, ideal for those who value comfort and space during their travels. Budget is well-regarded for providing great value for money, ensuring that travellers can enjoy their trip without breaking the bank.
• Alamo Rent A Car: Alamo Rent A Car operates from 1 location in Panama City and is favoured for its excellent customer service. Travellers often choose Alamo for their Compact and Midsize SUVs, which are well-suited for navigating the city and surrounding areas. With a commitment to a hassle-free rental experience, Alamo helps make your journey enjoyable and straightforward.

Where to stay in and around Panama City

• Lower Grand Lagoon: Located 9 km from Panama City, Lower Grand Lagoon is perfect for a city-themed, family beach experience. Explore local landmarks such as the beautiful Panama City Beaches and the scenic St. Andrews State Park. The area offers a variety of activities, including shopping and recreational areas, as well as nearby food options like wineries and breweries, making it a delightful spot for relaxation and exploration.
• Upper Grand Lagoon: Situated 8 km from Panama City, Upper Grand Lagoon provides an enticing mix of outdoor and beach experiences. Key attractions include the adventurous Capt. Anderson's Marina and the picturesque St. Andrews State Park. With ample recreational areas and shopping centres nearby, visitors can enjoy both leisure and adventure. The local food scene features wineries and breweries, adding to the vibrant atmosphere of this charming village.
• Callaway: Positioned within the Panama City area, Callaway is an ideal location for families seeking outdoor adventures. The village is home to St. Andrews State Park, perfect for those who appreciate nature and scenery. With a variety of recreational areas and shopping centres, Callaway also offers a selection of nearby restaurants and wineries, ensuring a pleasant stay for visitors looking to explore the local culture and attractions.

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

1. Use filters to find the right car: Refine your search by vehicle type and features. Whether you require an SUV for additional space, a convertible for summer drives, or an economy car for budget-friendly travel, utilise filters on Expedia to assist you in finding the perfect match for your journey.
2. Book in advance to help lower costs: Rental rates can vary based on demand, so it’s advisable to secure your car well ahead of your trip. By booking in advance, you are likely to obtain lower rates and enjoy greater availability, particularly during peak seasons.
3. Consider a smaller car for savings: Smaller vehicles are typically more affordable to rent and easier to manoeuvre in crowded areas. Mid-size rentals offer a favourable balance of cost, comfort, and fuel efficiency.
4. Age guidelines: Drivers under 30 years may encounter higher deposits or daily surcharges, and some vehicle types—such as SUVs or premium models—might not be accessible. This can also apply to renters over 70 years old. Always verify the age requirements prior to booking.
5. Check fuel policies: Some rental agreements require a full-to-full fuel policy, which means you must return the vehicle with a full tank to avoid additional charges. This is generally the most favourable option. Others may offer full-to-empty or prepaid fueling alternatives, which are also acceptable. Just ensure you return the car empty in this scenario.
6. Save on city and airport pickups: Collecting your rental car at airports often incurs a surcharge, but the added convenience may make it worthwhile.
7. Know your payment options: Many car hire companies exclusively accept credit cards for payment.
8. Understand your insurance coverage: Car hire insurance can help you avoid unnecessary expenses and provides added peace of mind should the unexpected occur during your trip. It’s straightforward to include car hire insurance when booking through Expedia.
9. Consider unlimited mileage: If you’re planning long road trips, seek rentals with unlimited mileage to prevent incurring extra costs.
10. Bring your driver's license and ID: A valid driver's licence is required to hire a car.

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 February, when prices are moderately low and demand is average. March also offers reasonable rates with similar demand levels. As spring approaches, April and May see average prices but high demand, making them busier months. In contrast, December tends to be the most expensive month, with moderately high prices and low demand, alongside January, which is another quiet time but still pricier than February.

Calendar Month	Temperature	Precipitation	Cloudiness	Demand	Pricing
January	54.1°F (12.3°C)	Light Rain	Mostly Sunny	Low	Moderately High
February	57.9°F (14.4°C)	Light Rain	Mostly Sunny	Average	Moderately Low
March	62.8°F (17.1°C)	Light Rain	Mostly Sunny	Average	Moderately Low
April	68.4°F (20.2°C)	Light Rain	Mostly Sunny	High	Average
May	75.0°F (23.9°C)	Light Rain	Mostly Sunny	High	Average
June	81.1°F (27.3°C)	Light Rain	Mostly Sunny	Average	Average
July	82.6°F (28.1°C)	Light Rain	Mostly Sunny	Average	Moderately Low
August	82.8°F (28.2°C)	Moderate Rain	Mostly Sunny	High	Moderately High
September	79.5°F (26.4°C)	Light Rain	Mostly Sunny	Average	Average
October	72.0°F (22.2°C)	Light Rain	Sunny	Average	Average
November	62.4°F (16.9°C)	Light Rain	Mostly Sunny	Low	Average
December	58.1°F (14.5°C)	Light Rain	Mostly Sunny	Low	Moderately High