I was a hotel manager and director of operations for much of almost twenty years in hospitality, from the Algarve to Dublin. In that chair you hear about everything that goes wrong on a guest's trip, even what isn't the hotel's fault. And the car hire deposit comes up more often than you'd think: the card limit frozen at the airport that is missing at check-in, the first day of the holiday spent on the phone to the bank.
So when DiscoverCars started showing cars with no deposit and no card at pickup, I wanted to know whether it was real and what it costs. I don't live in Madeira, I live in Portimão, and I didn't rent a car for this article. I did what I always did as a director when a supplier promised too much: I went to the numbers. I picked the airport where this offer is strongest in Portugal, Madeira, and compared everything, with and without a deposit.
Transparency: this guide includes DiscoverCars affiliate links. If you book through them, Portal Turismo Portugal may earn a commission at no extra cost to you. My conclusions, including the less flattering ones, do not depend on it.
No deposit, no card: what actually changes
In a normal rental the company freezes a deposit on the main driver's credit card to guarantee the excess, the amount you pay yourself if the car is damaged. A hold is not a payment, but as far as your bank is concerned, that money no longer exists until the trip is over. On DiscoverCars' no-deposit offers, that step disappears.
What goes away
- The deposit hold. Nothing is frozen on your card.
- A card at pickup. You show your driving licence and ID and sign the agreement.
- The wait for the deposit to be released after the trip.
- Card-limit worries: whether it's enough, whether the desk takes debit.
What stays the same
- The excess. You are still liable for damage up to that amount. No Deposit is not insurance.
- Fuel, tolls, fines and cleaning are still on you.
- Extras (child seat, additional driver, GPS) are paid to the rental company, with the payment methods listed in the offer's conditions.
- The booking is prepaid. You pay the full rental when you book.
If there is damage, DiscoverCars says it settles directly with the rental company on no-deposit bookings. Charges found only after return (missing fuel, a fine) are settled with you by DiscoverCars itself; charges found at return can be paid at the desk on the spot.
Same dates, same airport: with and without a deposit
Same location, same dates, same driver; only the filters change. Totals for all 8 days, as DiscoverCars showed them on 13/10/2026:
Classic rental
€95.56
the cheapest of 492 offers, small car
- Credit card required
- Medium deposit frozen on your card
- The lowest price in the search
No deposit, no card
€280.67
Renault Clio or similar, rated 9.0
- No card at pickup
- €0 blocked
- +€185.11 over 8 days (≈ €23 a day)
The gap is bigger than I expected. But notice one detail: the “low” deposit option already cost €227.56, and even that one asks for a card. If you don't have a credit card, the fair comparison isn't with the €95.56; it's between having a car and not having one.
Some of the 16 offers with both filters on:
| Car | Type | Rating | Total |
|---|---|---|---|
| Renault Clio or similar | Economy, manual | 9.0 (1,644) | €280.67 |
| Fiat 500 or similar | Economy, 4 seats | 7.0 (2,433) | €324.07 |
| Dacia Sandero (guaranteed model) | Compact, automatic | 9.5 (128) | €358.85 |
| Mitsubishi ASX or similar | Compact SUV, manual | 9.0 (1,644) | €417.96 |
Rental supplier rating on DiscoverCars (number of reviews in brackets). All with unlimited mileage and airport pickup, by free shuttle or meet-and-greet.
The two filters that make all the difference
- Search your destination and dates. Open DiscoverCars in Madeira, choose Madeira Airport, your dates and the driver's age.
- Turn on both filters. In the left-hand column (on mobile, under “Filters”): “No deposit” and “No credit card”.
- Sort by price and compare. Total for your days, supplier rating, terminal pickup or shuttle.
- Open the conditions before paying. The excess, the fuel policy (“full to full” is the fairest) and the payment methods the desk accepts for extras.
- Decide on Full Coverage and pay. The offer is prepaid. Keep the voucher on your phone and bring the main driver's licence and ID.
My honest take, no sugar-coating
If you have a credit card with plenty of room, €23 a day is a lot to pay for peace of mind: I'd keep the normal deposit and buy good cover. If you don't, or your card is a debit card, the maths changes: in Madeira many of the places worth the trip are far from the buses, and this option is the difference between seeing them yourself and seeing them on someone else's Instagram.
Worth it if
- You don't have a credit card, or only a debit card.
- Your card limit is low, or you need it for the hotel and meals.
- It's your first time renting a car abroad.
- You travel in high season and want no arguments at the desk.
- You don't want to wait weeks for a deposit to be released.
Maybe not if
- You have plenty of card limit and already rent with a deposit stress-free.
- Your budget is tight: on these dates it was about €23 a day.
- You need a vehicle that doesn't appear with both filters (9-seat vans, for example).
- You'd rather pay at pickup: these offers are prepaid.
Algarve drivers think they know hills. Madeira is another league.
The VR1 expressway links the airport to Funchal and runs along the south coast, tunnel after tunnel. Leave it and you meet very steep climbs, tight bends and narrow roads in the villages and the mountains.
Small car, always. Easier to park in Funchal and to fit through the older roads. And if you're not used to hill starts, pay for an automatic. In my search the cheapest no-deposit automatic was a Dacia Sandero at €358.85 for 8 days: about €10 a day more than the manual Clio. The best money you'll spend on the trip.
With a car the island opens up: the natural pools at Porto Moniz and Seixal, Calheta, Pico do Arieiro at sunrise. To choose, see Madeira's beaches, the beach map and where to stay near the beach.
Where else you'll find no-deposit cars in Portugal
DiscoverCars' no-deposit locations page listed these Portuguese airports on 13/10/2026. The “from” prices are per day, for dates chosen by DiscoverCars: use them as a reference.
The islands lead, and it makes sense: almost everyone arrives there by plane, without their own car. In the Algarve, where I live, the choice is still small: 5 offers at Faro that day. For everything else about driving here, see my Algarve car hire guide.
The final checklist, to keep on your phone
- Both filters on: no deposit and no credit card.
- Excess, “full to full” fuel and payment methods for extras.
- Automatic, if you don't like hills.
- Full Coverage: yes or no, decided at home.
- Main driver's licence and ID.
- Booking voucher on your phone.
- Decline extras you didn't plan for.
- A full video of the car before you drive off, and another at return.
Frequently asked questions
Can I hire a car in Madeira without a credit card?
Yes, on DiscoverCars offers marked “No credit card”. At pickup you show your driving licence and ID and sign the rental agreement. In our search on 13/10/2026 there were 16 such offers at Madeira Airport for 8 days.
Does no deposit mean I don't pay for damage?
No. No Deposit is not an insurance product: the excess stays the same and you remain liable for damage up to that amount, plus fuel, fines, tolls and cleaning. To cover damage, add full cover such as DiscoverCars Full Coverage.
How much more does no-deposit car hire cost?
It depends on the dates. In our search (15 to 23 October 2026) the cheapest offer with no deposit and no card was €280.67 for 8 days, against €95.56 for the cheapest offer with a deposit and a credit card: about €23 more per day.
How do I find these offers?
Search your destination and dates on DiscoverCars and turn on both filters: “No deposit” and “No credit card”. Only with both selected do you see the offers with no deposit and no card.
Are there no-deposit cars in the Azores and mainland Portugal too?
Yes. On 13/10/2026 DiscoverCars' no-deposit locations page listed offers at Ponta Delgada, Lisbon, Porto and Faro, as well as Madeira. Always check availability for your own dates.
Turn on “No deposit” and “No credit card” and compare the offers for your dates.