Rental Car vs.

How renting a car compares with joining a tour

The question "rental car or tour?" comes up constantly on Tripadvisor and Reddit, but there is no single clear comparison. So I did both: one week with a rented Renault Clio (1.0 liter engine, biggest mistake) and one week with booked tours. I documented every levada, every summit, and every parking battle.

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The short answer: if you are traveling alone or as a couple and do not want to get up at 5 a.m. every day, book a private Madeira excursion. If you are a group of 3 to 4 people and think a rental car is cheaper, keep reading first, the hidden costs are real.

Madeira Private Tour: The Option A Experience

I booked a private day tour that took me to the Levadas 25 Fontes and Alecrim. The driver, a local from Ponta do Sol, knew every back route. We avoided the Rabaçal parking queue (the lower barrier was full by 8:45 a.m.) and parked instead at the upper parking area on the ER110, a trick I had not known about before. The shuttle took us down, and we were on the trail by 9:10 a.m. while other cars were still stuck in traffic. The guide explained to me that levada irrigation rights are still distributed according to the "rodizio" system from the 15th century, exactly what I had learned from Sr. António on the PR9. It felt like I was really seeing the island for the first time.

The catch: you pay for the convenience. The price per vehicle (up to 4 people) is notably higher than a rental car. But if you factor in the time spent looking for parking, navigating, and dealing with stress, it is the better choice for many travelers.

Why the rental car option almost won me over

I admit it: after three days with the rental car, I was close to canceling everything and booking only tours from then on. The 1.0 liter Renault Clio was a disaster on the ER103, the 40 hairpin turns with a 20% grade made the engine howl like a frightened animal. I barely made it to the Pico do Arieiro parking area by 6:15 a.m. because I had to stop halfway to let the engine cool down. On top of that came Madeira's 150 tunnels, Google Maps lost signal every time, and I ended up in Santana twice even though I was heading to Ribeiro Frio.

On the third day I drove to the Levada do Alecrim. The IPMA weather forecast said "light rain," within 30 minutes the path turned into a rushing stream. The water in the levada channel rose by 25 cm, and I waded ankle deep through the runoff. I turned back, soaked and chilled to the bone. The next morning the trail was closed due to a landslide, the IFCN hotline (291 211 800) confirmed it. Had I had a guide who knew the conditions, I would never have set out.

Tours offer something no rental car can provide: local knowledge and real time decisions. The guide on my Levada Walk Madeira knew that the PR9 was closed that day for construction work and chose the Levada do Risco instead, a striking waterfall I would otherwise have missed.

Levada Walk Madeira: The Option B Experience

The group levada tour was a mixed experience. The guide chose the route based on the group's fitness level, we ended up at the Levada dos Balcões, a flat, paved path through laurel forest. 1.5 km one way, 30 meters of elevation gain, no sense of exposure. Well suited to the beginners in the group, but for me as an experienced hiker it was a stroll. The famous friendly chaffinches ate from my hand, and the cafe at the trout farm was a nice bonus. But if you are looking for a real challenge, this is not the tour for you.

What bothered me: you have no choice. The guide decides, not you. If you are set on seeing the 25 Fontes and the guide takes you to the Levada do Alecrim instead, you will be annoyed. But for first time visitors who have no idea which levada to choose, it is a solid starting point. The cost is lower than a private tour, and the transfer is included, so you save on rental car costs and stress.

The moment I made my decision

It was the fourth day. I left Funchal at 5:30 a.m. to catch the sunrise on the Pico do Arieiro. I had not booked the Pico do Arieiro Sunrise Transfer + Hike in advance, a mistake, since in August all the spots were taken. So I drove myself. The sky was clear, and I felt confident. When I got to the parking area, all 60 spaces were full. I parked at the radar station overflow area, 500 m away, and trudged up the hill in the dark. By the time I reached the top, I was sweaty and irritated. The sunrise was spectacular, but I was too late to get a good viewpoint. 200 people were crowded onto the platform, and someone was playing music from a bluetooth speaker.

I decided to take the PR1 back toward Pico Ruivo. The first 2 km were easy. Then came the tunnel, pitch dark, 200 m long, freezing cold. I did not have a headlamp with me, only my phone. The ground was uneven with pools of water, and I stumbled three times. At the exit, the temperature had dropped by 12°C, and I waded through fog so thick I could not see the trail markers. I was shivering in my thin rain jacket. It took 5 hours to reach Achada do Teixeira, and my knees ached for two days afterward.

In that moment it became clear to me: the rental car gave me freedom, but the tour would have saved my sanity. The sunrise transfer gets you to the summit by 6 a.m., you hike one way to the Ruivo, and a driver picks you up. No parking stress, no searching for a flashlight, no 5 hour walk back. If you are fit and want the sunrise, that is the smarter choice. But if you are a control freak like me who wants to choose every turn yourself, then the rental car is your thing, with all the consequences that come with it.

What I wish I had known beforehand

Here is the honest list I could not find on Reddit:

• Rental car costs are higher than expected: the cheapest rate at Europcar was around 30 €/day, but with full coverage insurance (no deductible), an additional driver, and fuel, I ended up at 55 €/day. Goldcar and Sixt prohibit driving on the ER101 and ER110 in their fine print, exactly the roads you need. Europcar and Guerin allow it. Check the "geographic restrictions" clause, otherwise you will pay out of pocket in case of damage.
• Parking nightmare: the PR1 Arieiro parking area (60 spaces) is full by 6:30 a.m. The Rabaçal parking area (80 spaces) is full by 9 a.m. The PR8 Sardinha parking area (50 spaces, €3/day in summer) is full by 10 a.m. The trick: at Rabaçal, park at the upper parking area on the ER110 (120 spaces, rarely full before 10 a.m.) and take the shuttle down (€2.50 one way, cash only). The shuttle runs every 15 to 20 minutes in summer, with the last run at 6:30 p.m. (4:30 p.m. in winter).
• Public buses are not useful: the SAM bus 110 (Funchal to Porto Moniz) stops at the Rabaçal turnoff, but only 3 times a day, none before 8 a.m. Bus 113 (Funchal to Caniçal) stops near the PR8, but 800 m from the trailhead. No bus goes to the PR1 Arieiro. Rent a car or book a tour with transfer.
• The microclimate is not a myth: I started the PR1 in April in t-shirt weather at the Arieiro parking area. 2 km later, at the tunnel, the temperature dropped by 12°C, and I walked through freezing fog. The shift in weather from the north coast happens on the ridge between Arieiro and Ruivo, like a lid popping off a pot. I now always carry a thermal layer on the PR1, even when Funchal is at 28°C.
• Buy trekking poles, but cheaply: at Decathlon in Funchal (Madeira Shopping, 2nd floor), basic aluminum poles cost €12.99. At the PR1 summit kiosk they charge €35 for the same model. Sprinter (Rua do Carmo) also has decent mid-range poles. Airport shops charge a 40% markup.
• Check the IFCN status in the morning, not the night before: the hotline 291 211 800 (English, option 2) is updated daily at 7:30 a.m. In August 2025, 23% of levada paths were closed unexpectedly on any given day, due to construction, landslides, or fire risk. I once drove 45 minutes to the Arieiro only to see a "PR1 CLOSED, MAINTENANCE" sign. The backup plan was the PR1.2 from Achada do Teixeira (3 km one way, 100 meters of elevation gain, same summit). Since then I always keep the PR1.2 scouted as my official plan B.

And one last tip: the bakery Padaria do Monte (opens at 5 a.m.) on the way to the Arieiro makes a bolo do caco with garlic butter that stands out on the island. Grab one for the summit, it makes for a fine breakfast above the clouds.