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Lowest prices found within the past 16 hours. Prices and availability subject to change. Additional terms may apply.

What you need to know for your Panama City car rental

Reasons to book a car rental in and around Panama City

Renting a car in Panama City offers unparalleled freedom and flexibility for travelers looking to explore at their own pace. Whether you're an adventure seeker, cultural explorer, or nature lover, having a rental car allows you to easily manage your luggage and create flexible travel plans. You can conveniently visit key attractions such as Avenida Balboa, renowned for its vibrant city experiences, and Cinta Costera, an urban park perfect for family outings. The Amador Causeway invites you to immerse yourself in the local culture. Additionally, exploring neighborhoods like Casco Viejo, home to the Metropolitan Cathedral of Panama and the Interoceanic Canal Museum, becomes effortless with a rental car. Bella Vista offers attractions like Via Espana and the Megapolis Convention Center, while Juan Diaz boasts historical sites such as Panama Viejo. For families, business travelers, or anyone looking to make the most of their visit, a rental car is an essential tool for navigating Panama City and its surroundings, ensuring a hassle-free experience as you uncover all that this vibrant destination has to offer.

Most popular car rentals in Panama City

  • Midsize SUV: This option is perfect for families, couples, or small groups, accommodating up to 5 travelers with ample space for up to 3 large suitcases. Midsize SUVs provide the versatility needed for exploring Panama City comfortably while allowing for easy luggage management. Ideal for adventure seekers and those looking to explore at their own pace, this vehicle type is a popular choice among renters.
  • Economy: An economical choice that fits up to 5 travelers with room for 2 medium suitcases, the economy car is great for solo travelers, couples, or small families. Its compact size makes it easy to navigate through Panama City, ensuring a hassle-free driving experience while still providing the flexibility to visit various attractions. This option is favored by budget-conscious renters looking for efficiency without sacrificing comfort.
  • Fullsize: Offering spacious accommodations for up to 5 travelers, the fullsize car can handle up to 3 large suitcases or 5 medium suitcases, making it an excellent choice for families or larger groups. This vehicle type combines comfort and convenience, allowing travelers to enjoy their journey while carrying all necessary luggage. Its popularity stems from the balance it strikes between space and driving ease, making it a reliable option for exploring Panama City.

Top rated car suppliers in Panama City

  • Alamo Rent A Car: Alamo Rent A Car has established a strong presence in Panama City with 5 rental locations. Travelers often choose Alamo for its reliable selection of vehicles, with the Midsize SUV and Economy SUV being the most booked options. The flexibility of renting from Alamo allows you to explore the city and its attractions at your own pace, making it a popular choice among tourists.
  • Budget: With 2 rental locations in Panama City, Budget is recognized for providing excellent value for money. The Fullsize SUV and Midsize SUV are the most popular choices among customers. Budget's strategic locations and competitive pricing make it a convenient option for those looking to enjoy the sights of Panama City while managing their travel expenses effectively.
  • National Car Rental: National Car Rental also boasts 5 rental locations throughout Panama City, catering to the needs of travelers seeking reliable transportation. Known for its customer service, National's most booked vehicles include the Midsize SUV and Economy SUV. This supplier offers a seamless experience for tourists wanting the freedom to explore both the city and surrounding areas comfortably.

Where to go in Panama City

  • Casco Viejo: This historic neighborhood is a must-visit for travelers seeking culture and city experiences. Notable attractions include the Metropolitan Cathedral of Panama and the Interoceanic Canal Museum, both offering rich cultural insights. Independence Square is a charming piazza nearby, perfect for relaxation. Casco Viejo sees peak visitor numbers in January and March to April, making it an ideal time for families and business travelers to explore its shopping areas and local landmarks.
  • Bella Vista: Known for its vibrant atmosphere, Bella Vista is excellent for family and city experiences. Key highlights include Via Espana, a bustling street perfect for shopping, and the Iglesia del Carmen, a beautiful church that enriches the neighborhood's cultural landscape. The Megapolis Convention Center is also nearby, catering to business travelers. Peak visitor numbers are seen in February to March and December, making these months particularly vibrant for exploration.
  • Juan Diaz: This neighborhood offers a blend of city life and cultural experiences, ideal for families and business travelers. Notable sites include Panama Viejo, a historic site that showcases the area’s rich history, and Avenida Balboa, a lively street perfect for leisurely strolls. The ATLAPA Convention Center provides facilities for business events. Peak visitor numbers occur in February to March and December, making these months favorable for enjoying the local shopping centers and attractions.

10 tips to save on your Panama City car hire

  1. Use filters to find the right car: Refine your search by selecting vehicle type and desired features. Whether you need an SUV for added space, a convertible for summer enjoyment, or an economy car for budget-friendliness, utilize the filters on Expedia to discover the ideal match for your journey.
  2. Book in advance to help lower costs: Since rental prices can vary based on demand, it’s advisable to secure your car well ahead of your trip. By booking early, you’re more likely to lock in lower rates and benefit from better availability, particularly during peak travel seasons.
  3. Consider a smaller car for savings: Smaller vehicles are typically less expensive to rent and easier to maneuver in crowded areas. Mid-size rentals strike a good balance between cost, comfort, and fuel efficiency.
  4. Age guidelines: Drivers under 30 may encounter higher deposits or daily fees, and certain vehicle categories—such as SUVs or luxury models—might not be available. This can also apply to renters over 70 years old. Always verify the age requirements prior to booking.
  5. Check fuel policies: Some rentals operate under a full-to-full fuel policy, which requires you to return the car with a full tank to avoid additional charges. This is generally the most advantageous option. Others may provide full-to-empty or prepaid fueling alternatives, which can be acceptable as well. Just ensure you return the car empty in that scenario.
  6. Save on city and airport pickups: Picking up your rental car at the airport often incurs a surcharge, but the added convenience might make it worthwhile.
  7. Know your payment options: Many car rental companies exclusively accept credit cards for payment.
  8. Understand your insurance coverage: Car rental insurance can help you avoid unexpected expenses and offers peace of mind in case something unforeseen occurs during your trip. It's simple to add rental insurance when you book with Expedia.
  9. Consider unlimited mileage: If you plan to take long road trips, seek rentals that offer unlimited mileage to steer clear of extra charges.
  10. Bring your driver's license and ID: A valid driver's license is mandatory for renting 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 October, when both prices and demand are low. November follows closely, maintaining similar low levels. You can also consider May, which features slightly low demand and average prices. However, be aware that July is typically the most expensive month, with slightly high prices and average demand. January and February are also busy times, marked by slightly high prices and demand.

calendar iconCalendar Monthtemperature iconTemperaturerain iconPrecipitationmostly cloudy iconCloudinessoccupation rate iconDemandprice iconPricing
January78.8°F (26.0°C)No Rain (Dry)Mostly SunnySlightly HighSlightly High
February79.2°F (26.2°C)No Rain (Dry)Mostly SunnySlightly HighAverage
March79.7°F (26.5°C)No Rain (Dry)Mostly SunnyAverageSlightly Low
April80.4°F (26.9°C)Light RainMostly SunnyAverageAverage
May80.2°F (26.8°C)Frequent RainMostly CloudySlightly LowAverage
June79.9°F (26.6°C)Frequent RainMostly CloudyAverageAverage
July79.3°F (26.3°C)Frequent RainMostly CloudyAverageSlightly High
August79.2°F (26.2°C)Frequent RainMostly CloudyAverageAverage
September79.3°F (26.3°C)Frequent RainMostly CloudyAverageAverage
October78.6°F (25.9°C)Frequent RainMostly CloudySlightly LowSlightly Low
November78.3°F (25.7°C)Frequent RainMostly CloudySlightly LowSlightly Low
December78.6°F (25.9°C)Light RainMostly CloudySlightly HighSlightly High

Finding the cheapest car rentals in Panama City

Using our Search Wizard

If the deals that are available on our page do not suit your needs, then enter Panama City into the search wizard at the top of the page. We will compare all the best deals available for your car rental in Panama City and provide you with a list of the cheapest options, with no added fees.

Renting a car in Panama City

Pay at pickup is available, so you don’t have to worry about spending your money until you arrive at your vehicle in Panama City. We partner with reliable partners that guarantee an enjoyable experience for solo travelers, couples, and families. Package your car with a flight or hotel to unlock even more savings from Expedia.

Expected prices in Panama City

Prices are subject to seasonal change depending on when you decide to arrange your car rental but right now you can book from $1.

Flexibility & Cancellation

Most car suppliers offer penalty-free cancellations, so you don’t have to worry about losing money if your plans change. To cancel your booking log into your account through the Trips portal. Click manage booking and cancel this car. If you needed to alter your booking, then you can create a new one once you have canceled.

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One Key members save 10% or more on select hotels, cars, activities and vacation rentals. Not only that, earn OneKeyCash for every dollar spent on eligible hotels, vacation rentals, flights, car rentals, and more when you book across our family of brands: Expedia, Hotels.com and VRBO. Learn more and join today.

Car classes available from Expedia in 2026

The classes of vehicles available will change depending on your chosen location.

Car Rental Information

 
Popular car types
SUV, Full Size, Economy
 
Car suppliers available
 
Our best deal of the day
$1
 
Our second best deal of the day
$2
 
Our third best deal of the day
$4
 
From the airport to your hotel
Airport Transportation
 
From popular domestic and international airports
Airport Car Rentals

Frequently asked questions

How much is a rental car per day in Panama City?
Daily rental prices were as low as $1 within the past seven days. With rates like this, zipping around the streets of Panama City in your own set of wheels is an affordable way to see the sights.
Can I rent a car from Tocumen Intl. Airport (PTY)?
With Thrifty Car Rental and Fox Rental Cars within a quick commute of Tocumen Intl. Airport (PTY), getting off the plane and hitting the open road is quick and easy.
What happens if I need to cancel my Panama City car reservation?
We get that things can change at short notice. That's why a large number of reservations offer a total refund if you cancel six hours prior to the pickup time. Your rental agreement should have all the details you need. If you can't see the answer there, our Customer Service Portal is available to help.
Where can I go on a road trip from Panama City?
There's heaps to do in Panama City, but venture farther afield and you'll find even more magic. Rent a set of wheels and you can wander around the greater area at your leisure. Add these fantastic drives to your to-do list:

  • Colon is about 35 miles from Panama City. Popular tourist attractions like Gatun Locks deserve to be high on your list while you're in town.
  • Your next pit stop? Make it Santiago, which is around 120 miles away. Escuela Normal Juan Demostenes Arosemena is one local draw card you really shouldn't miss.
  • Get out into the outdoors and take in the serenity at Starfish Beach. You'll find it approximately 190 miles from Panama City.

How do I find the best car rental deals in Panama City with Expedia?
Whatever type of wheels you want, Expedia will help you pick up the best deal. Just compare the offers from reliable rental suppliers and pick the option that works for you. Love to drive away with even bigger savings? Bundle your Panama City car rental with flight or hotel bookings.
What do you need to rent a car in Panama City?
Any rental company you select will require two things — a current driver's license and credit card. If you choose to opt out of the supplier's insurance plan, proof of other coverage will also likely be needed. Read through your policy so you know what to bring when it's time to pick up the keys.
What is the cheapest car rental in Panama City?
Based on prices found over the past seven days, you could've hopped into the driver's seat of a rental car for just $1 a day. The second lowest daily rate offered in Panama City was $2. These rates were available on Expedia, with a rental starting date within the next year. Prices and availability are subject to change and additional terms apply.
Can I rent a car for a month or longer in Panama City?
Yes, and you'll find your ideal set of wheels on our long-term car rental deals page. Just enter your trip information and we'll list amazing options from various reputable suppliers.
Where can I find a Panama City car rental if I am younger than 25?
Age policies differ between rental suppliers, so you'll have to do a bit of homework. Managed to find a Panama City outlet that does rent to drivers under 25 years of age? Awesome! Just take note that some companies charge additional fees to drivers aged between 21 and 24. The terms and conditions of each rental car you're looking at should have all the details you need.
What insurance should I choose for my car rental in Panama City?
It's wise to have collision protection to safeguard your Panama City rental car against theft, accident damage and vandalism. And with Expedia, you can easily purchase this insurance for your vehicle during the booking process. Covering primary physical damage of up to $35,000, it also offers 24/7 emergency help and a zero-dollar deductible should you need to make a claim. Plans changed? If you cancel your insurance before your scheduled collection time, you'll receive a complete refund.
Can I drive in Panama City with my current driver's license?
If you don't hold a driver's license issued in Panama, then you may need to apply for an International Driving Permit (IDP) in your home country to be allowed to rent a car. Please also consider that if an IDP is required, it has no validity on its own. You'll have to show your driver's license from your home country your passport and other forms of documentation as well. Lastly, make sure the credit card used to book the rental matches the name on your driver's license and passport. Some other things to note to rent a car internationally are:

  • Age restrictions: You need to be 25 or over in most countries to rent a car. If you're younger, it might still be possible to rent a car but you'll have to pay a Young Driver's Surcharge. Additional restrictions may also apply to what kinds of cars you can rent.
  • Driving limitations: Be sure to read the rules and regulations before driving away. With rental cars, you usually can't cross country borders, drive on ferries or go off-roading with a rental car.

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