How to Rent a Car in Oaxaca (Rental Companies & Prices)

To make the most out of the city of Oaxaca – and explore all it has to offer – you need to rent a car. Public transportation and taxis have their own host of drawbacks, like limited destination options and cost.

To rent a car in Oaxaca, you need to:

Make an online reservation
Choose your ideal car model
Obtain essential Mexican insurance
Pick up your vehicle
Sign the rental agreement
When your road adventures have concluded —return the car.

In this guide, we’ll break down each step, share essential driving tips and rules, and address any questions you may have about car rentals in this beautiful Mexican state. Rest assured, when it comes to renting a car in Oaxaca, a well-informed traveler is a confident traveler.

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Can You Rent a Car in Oaxaca, Mexico?

Tourists can indeed rent cars in Oaxaca, Mexico. However, there are specific eligibility criteria that you must meet before securing your rental:

Age Requirement: You need to be at least 18 years old to rent a car in Oaxaca.
Driver’s License: Your license needs to be valid, current, written in the Latin script or translated as an International Driving Permit (IDP).
Credit Card: You must have a personal credit card with sufficient funds to cover the rental fees and potential security deposit.
Mexican Car Insurance: Mexican car insurance is a must-have, and it’s typically provided by the car rental company itself.

How Much Does It Cost to Rent a Car in Oaxaca?

The total cost of renting a car in Oaxaca will vary based on several factors. Typically, rental rates in Oaxaca start at around $37 per day. This base rate includes a budget-friendly car (for a minimum of $33 per day) and the minimum required Mexican car insurance (ranges from $5 to $15 per day).

However, if you opt for a high-end car with premium features and the most comprehensive Mexican insurance option (full coverage), your daily rental cost will cost as much as $130. The full-coverage insurance alone costs $20 to $40 per day.

So, the final cost of your rental depends on the car model, type of insurance, and other preferences you make during the booking process such as additional drivers, child safety seats, etc.

Where Exactly Can You Get a Car Rental in Oaxaca?

There are 2 primary pickup locations to choose from: Oaxaca Airport and the city’s downtown.

If you’re flying into Oaxaca and want to start exploring as soon as your plane lands, renting a car from the airport will save you tons of time and effort otherwise spent arranging additional transportation.

On the other hand, if you prefer a more relaxed start to your vacation and don’t require a car immediately upon arrival, you can opt for a downtown pickup. This allows you to settle into your accommodation and get a feel for the city before renting a car. It’s a convenient choice if you plan to explore Oaxaca later in your trip.

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How to Rent a Car in Oaxaca

Select your pick-up and drop-off dates and locations
Choose the car that suits your needs
Pick the type of Mexican car insurance.
Collect your car
Sign the rental agreement
Return the car with a full tank of gas

Ready to learn the procedure of renting a car in Oaxaca? There are six steps in total. Prepare your notes and let’s go over each step.

Step 1: Select the Date, Time, & Location

In Oaxaca, you decide how you want to begin and end your car rental journey. This includes visiting the rental company’s website and selecting the date, time, and location for picking up and dropping off your car.

For instance, if you want your car right after landing at Oaxaca Airport, simply choose the airport as your pickup spot and your arrival date and time. And if your departure is also from Oaxaca Airport, returning your rental car there on your date of departure is the most convenient option — everything comes down to your comfort and flexibility.

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Step 2: Choose a Car

You’ll come across a variety of choices, each tailored to different needs and preferences. There are small, budget-friendly cars, mid-size vehicles with more space, or large cars that can comfortably fit up to give passengers, ideal for bigger groups or families.

Adventurous souls can choose SUVs built to handle diverse terrains. And if you’re traveling with a group of more than five, you can rent a roomy van. For those seeking a touch of luxury, premium cars with high-end features are also on the menu.

Consider factors like the number of passengers, the duration and distance of your trips, and your budget when making your car selection. It’s all about finding the perfect fit for your Oaxaca adventure.

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Step 3: Pick a Mexican Car Insurance

Driving without insurance is illegal in Mexico, so the car rental company will not be able to rent you a car without it. Plus, your home country’s insurance coverage does not apply here.

You can purchase your Mexican car insurance from the car rental company, right after you pick your car. The bare minimum of coverage allowed by Mexican law is third-party liability insurance, which is the cheapest option.

If you’d like more protection, you can opt for additional coverages in addition to that, such as:

Collision insurance, which covers car repairs.
Medical insurance, which covers doctor visits and medications.
Comprehensive insurance, which protects against natural disasters and wildlife encounters.
Theft protection, which handles expenses in case your car goes missing.

Another option is the full-coverage insurance that bundles all of these together. Full coverage means you are protected from every possible incident there is, plus, you won’t need to buy the mandatory third-party liability insurance separately because it’s already included in this policy.

Your insurance choice ultimately depends on your budget and what it takes to have peace of mind. In other words, it’s about finding the right balance between protection and cost.

Step 4: Arrive to Pick up the Car

The next stage in your car rental adventure is to arrive at the car rental offices on the agreed-upon day. When you arrive at the counter, you’ll need to confirm the reservation and hand over the necessary paperwork to be qualified to rent a car — proof of age, driver’s license, credit card information, and insurance coverage.

After confirming your reservation, a representative will guide you to your rental car and go over its features, fuel level, and important details with you. Before you hit the road, give the car a good once-over. If you spot any existing damage, report it to the rental company and snap some photos for proof. Taking this precaution will save you from potentially getting charged for damage that you didn’t cause.

Step 5: Sign the Car Rental Agreement

After getting to know the specifics of your rental, the next step is signing the rental agreement. This agreement is a legal contract between you and the car rental company, covering essential details like the total rental cost, insurance terms, fuel rules, late return policies, etc.

Take a moment to carefully read through the entire agreement and proceed to sign only after you’re completely confident regarding the terms and conditions. This ensures you won’t be surprised by unexpected costs later on. Once you’re satisfied, sign the agreement, and the rental company will hand over the keys to your car.

Quick tip: Before hitting the road, double-check the fuel level to match what’s in the agreement. If it’s different, inform the rental company promptly, as it may affect your refueling plans and expenses.

Step 6: End of the Agreement

Your rental agreement reaches its conclusion when you return the car. To ensure a successful last step, remember two key things: first, fill up the tank to the level specified in the car rental agreement. Second, return the car to the designated drop-off location at the agreed-upon time. If you forget to follow these requirements, you might face extra charges for refueling and late returns.

When you return the car, the rental company will give it a thorough check for any issues or damages. If everything looks good, they’ll provide you with a receipt confirming the car’s condition. And that’s a wrap — your Oaxaca car rental adventure has officially reached its end, leaving you with fond memories of your journey.

FAQ

How Much Does the Fuel Cost in Oaxaca?

In Oaxaca, Mexico, the price of one liter of gasoline falls in the range of 22 MXN to 24.25 MXN, equivalent to $1.24 to $1.35 per liter. Rental companies in Oaxaca usually hand over their rental cars with a full tank of gas, so you don’t need to worry about immediate refill charges. However, you need to return the car with the same amount of fuel that you picked it up with, also known as the “back-to-back” policy. When you arrive at the gas station, remember that Mexico doesn’t offer self-service, so you need to wait for an employee to refill your car tank.

Is Renting a Car in Oaxaca Mexico Safe?

Oaxaca boasts impressively low crime rates, making it one of the safest Mexican cities for travelers. This welcoming and secure atmosphere also sets the stage for a worry-free car rental experience.

Road signs in Oaxaca have clear directions and signs specifying speed limits or imparting important warnings for a safe journey. You can also expect regular police patrols, particularly on major roadways, contributing to overall order and safety in traffic.

When it comes to road conditions, Oaxaca has well-maintained main roads and highways. However, keep an eye out for occasional potholes on certain secondary streets. If you want to avoid traffic congestion, keep in mind that rush hours in Oaxaca typically occur from 7:30 AM to 9:30 AM and again from 5:30 PM to 7:30 PM.

Finally, avoid driving during the night or parking in non-designated areas of back alleys.
All in all, Oaxaca is inherently a safe place to rent a car, but ensuring a secure and smooth journey ultimately lies in your hands – just follow these safety tips.

Can You Get Scammed When Renting a Car in Oaxaca?

Yes, car rental scams exist in Oaxaca, especially online. These scams often appear as deceptive rental ads featuring unrealistically low daily rates, like $4, enticing customers to book a car and later surprising them with hidden charges that significantly inflate the final cost.

To safeguard yourself from falling victim to these scams, it’s wise to steer clear of less reputable rental companies, especially those with bad reviews. Established and trustworthy providers, which we’ll discuss shortly, maintain upfront and fair pricing practices. Therefore, if an online car rental offer appears too good to be true, it probably is, so exercise caution and opt for reputable providers instead.

Who Are the Best Car Rental Companies in Oaxaca?

In Oaxaca, great car rental options include Alamo, Europcar, Hertz, Mex-Rent-a-Car, and Thrifty. They offer good service and versatile car choices. You can book a car in advance on their websites for a smooth start to your Oaxaca adventure.

But here’s the easy way: DiscoverCars. It’s a one-stop shop for all these options, so no need to juggle different websites. DiscoverCars has partnerships with all the rental companies, giving you competitive prices, frequent bonuses, upfront info on costs, and customer reviews to help you decide. Plus, you can change your plans for free within 48 hours.

Driving in Oaxaca: Rules & Tips for a Smooth Ride

While out and about around and within the city of Oaxaca, you need to follow Mexico’s driving rules. Failing to do so results in fines, at the very least.

Here are some of the key rules for driving in Mexico:

Drive to the right side of the road.
Speed limits vary – in urban areas, it’s 40-60 km/h (25-37 mph), rural roads allow 80-100 km/h (50-62 mph), and highways permit 100-110 km/h (62-68 mph).
Everyone in the car must wear seat belts.
For kids under 7, child safety seats are a must.
The blood alcohol limit is approximately 0.04%, so it’s wise to skip alcohol if you plan to drive – which is always true.
Using handheld cell phones while driving is a no-go, but you can use hands-free devices.
When you spot a roundabout, yield to traffic inside it.
Overtaking is allowed on the left, but make sure to signal your planned moves.
Be ready for tolls on major highways in Mexico.
Do not offer rides to hitchhikers.

In addition, we share some safety tips and tricks to be mindful of as they are equally important:

Avoid driving at night in rural areas because it’s harder to see and there can be unexpected dangers.
Motorcycles are popular in Oaxaca, so be really careful when changing lanes because they might weave between cars.
Always keep some Mexican pesos with you for toll booths in case credit cards or foreign money aren’t accepted.
Be on the lookout for wildlife in rural areas, like stray animals, that can suddenly cross the road.
GPS apps like Google Maps or Waze can be super helpful for finding your way around.
Watch out for speed bumps on the road.
You might run into traffic police and checkpoints, especially on big highways, so be polite and follow their instructions.

Is Renting a Car in Oaxaca Worth It?

Renting a car in Oaxaca is a game-changer for your trip. It means you can explore freely, skip waiting for taxis, and stick to your own schedule. No more rushing to catch buses or tours — just the freedom to go where you want, when you want. Plus, with a car, you can uncover hidden gems and make the most of your vacation. It’s a smart move if you value comfort and adventure.

Conversely, if your idea of a perfect vacation involves soaking up the chill vibes downtown, renting a car may prove unnecessary. The city’s downtown area offers a wealth of options, from restaurants and malls to local markets and attractions — ideal for those who prefer relaxation over adventure.

Places to Visit in Oaxaca With the Freedom of Your Own Car

Go to the Historic Center of Oaxaca, a UNESCO World Heritage Site;
Visit a portion of Mexico’s pyramids at Monte Albán;
Visit the Zapotec ruins of Mitla;
Swim at the Hierve el Agua waterfalls;
Visit the world’s widest tree, the Tule Tree in the town of Santa María del Tule, a short drive from Oaxaca;
Visit local mezcal distilleries, learn about the production process, and sample various types of mezcal;
Explore nearby villages known for their artisanal crafts, including Teotitlán del Valle (weaving), San Bartolo Coyotepec (black pottery), and San Martin Tilcajete (alebrijes, colorful wooden sculptures);
Hike at the beautiful Sierra Norte mountains;
Visit local markets and try traditional dishes;
Take a day trip to the Pacific coast to sunbathe at the Puerto Escondido and Huatulco beaches.

Oaxaca Car Rental Summary

To sum everything up, renting a car in Oaxaca is simple and necessary if you want to make the most of your trip.

Before you start, ensure you meet the requirements: age, driver’s license, credit card, and Mexican car insurance. These are a must. Mexican insurance is just one part of the six-step process: booking online, choosing a car, getting insurance, picking up the vehicle, signing the agreement, and returning it after your trip.

Other than that, remember to take pictures of any pre-existing damage, return the car with a filled tank, and be on time. Stay safe, follow the rules, and enjoy your drive in Oaxaca!

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