Magic Islands Rent a Car Reviews 

This company does not return your deposit which is insanely high (EU1500,-). We rented a car and the deposit has still not been returned to us.

Deposit not returned after 10 weeks.
No response to any emails and lady at the customer service just laughed at me while I called them and asked them what I supposed to do.
Then she dropped the phone.

The experience in Madeira was good up until leaving when they told us that they would refund the deposit within 14 working days. Nearly 2 months later and I get my €1500 back not from them, but because I asked my credit card company for a chargeback. Avoid this rental scam at all costs.

A fine team of thieves, avoid at all costs!

Breach of contract: An automatic transmission car was forced upon me even though a manual gearbox had been reserved.

Security deposit issues: The deposit was actually debited from my bank account instead of a simple pre-authorization hold. Furthermore, the vehicle was handed over to me in a more than questionable state, with the front bumper hanging off.

Abusive downtime fees: Following a minor rear touch (a minimal impact on the bumper and three scratches) while getting used to the automatic gearbox, the agency billed me for "vehicle downtime". This is completely false: I personally watched their team wash the car and immediately re-rent it to the next customer.

Customer service: Complete refusal to communicate on the part of management when confronted with proven facts.

Report currently being filed with the European Consumer Centre. Avoid this agency at all costs!

AVOID Magic Islands Rent a Car at all costs!

Terrible experience. Magic Islands Rent a Car still hasn’t returned my security deposit, even though I returned the car almost 1.5 months ago.

Very poor communication and extremely unprofessional service. I do not recommend this company.

A deposit of €1,500 was debited from my card at the end of June, and the car was returned on 30 June in perfect condition — the return document signed by the agency says "Car ok", no new damage. It has now been six weeks and I still have no news of my deposit, despite two tickets, a dozen phone calls, a complaint filed with the Livro de Reclamações, a report to the Autoridade da Mobilidade e dos Transportes and a European Small Claims Procedure to recover the money. I have since been in contact with other customers in the same situation: we are now more than twenty people whose deposits have not been refunded since May.

I should have known from the start !!
My original booking was with economy car rental who appear to be nothing more than an insurance broker to sell you damage waiver insurance even though I didn’t tick the box for it .
However on collecting the car from NOT so magic car rental we we’re slowly processed and asked to pay €1500 as a security deposit and told it would be refunded back to my card on returning the car in the same condition and clean inside and out which is something I’ve never had requested before in over 35 years of rental.
On going to the car we were advised of damage on it which was very obvious as the majority of the passengers side had been badly damaged in an incident prior to our arrival.
I quite like a clean and tidy car so I asked for another but this was the only car available supposedly although there were many others around so we had to take this substandard one.
I fairness the car drove ok but just looked a mess .
Our problems started on returning the car as the office hours were very limited and we needed to pay €35 to get someone in out of hours that’s about 40% added to our hire cost just to get someone to take the car back.
This I where it all started to go badly wrong as the guy clearly didn’t like getting up early for us although we had now paid for the privilege and this showed in his attitude. No problems with the car so all good there but got out my card for my refund to be processed as I had paid on my debit card due to my credit card not working as I couldn’t remember my PIN number and was told he couldn’t do it as it’s done in another office.
I know my card machine lets me refund directly back to the card when inserted and I’m sure his would if he wanted to but he assured it would be refunded by the end of the day to which I was sceptical as my wife had shown me many reviews already on their site about problems getting your deposits back so I got out my phone and asked him to repeat the part where my money would be back in my account by the end of that day and he went wild .
Supposedly he called the police as I’m not allowed to film him although there were no notices advising of any such regulations.
Needless to say the Police didn’t show and I had to get to the airport so couldn’t wait any longer at the office. I was made to delete the video so no evidence kept and leave without the deposit unlike our original agreement.
I have emailed and called about my refund as obviously it did come and feel cheated that someone has my money and earning interest on while it’s held and I need it for my bills etc.
To conclude our holiday was magical but the car hire not so and if you do hire from these expect up to 3 months wait before you get the deposit back as many other people have had this problem however I got my bank involved early and have now got mine back .I was even threatened by magic island that my emails would be put to spam after 4 emails chasing my money which I think helped me get my money back from the bank quicker.
No chance I’d use these cowboys again as there are many other hire companies in Madera that actually look after their customers.

Made a deposit of 1500€ and it should be returned in 2 weeks they said, now they are nit responding to mails and haven’t had anything back in over a month. Poor company. Huge scam.

I returned the car on 7 July 2026 under Rental Agreement #70357. The vehicle was returned on time, and no issue was raised that would justify withholding my deposit.

A €1,500 security deposit was charged to my card. After the return, I contacted the company several times and asked a very clear question: whether my specific refund had actually been initiated. I also asked for the refund date, refunded amount, ARN / transaction reference, and proof of refund.

Instead of answering these questions directly, I received generic replies stating that refunds are processed automatically and may take up to 14 business days due to bank processing times. However, despite repeated follow-ups, I was never given confirmation that my specific refund had actually been submitted.

As of 29 July 2026, I still have not received the €1,500 deposit back, and I still have no transaction details or proof of refund.

I was also charged €25 for interior cleaning, even though there were only a few leaves on the floor mat. This felt excessive and unreasonable.

Holding a customer’s money while failing to provide clear confirmation or transparent communication is not acceptable. Based on my experience, I cannot recommend this company.

Returned my rental car on time, full tank, no damage - even their own staff wrote "All ok" on the return form. Over 7 weeks later, still no refund of my €1,500 deposit. Multiple calls and emails, no real response. Had to escalate to consumer protection authorities and I'm now preparing legal action. Very disappointing - be careful with the deposit if you rent here.

My experience with this car rental company was absolutely awful. I returned the car in the agreed condition, yet I still haven’t received my security deposit back. Despite contacting the company multiple times, I have received no clear explanation or resolution.

To make matters worse, the customer service is unbelievably weak. Responses are slow, unhelpful, and they seem completely uninterested in resolving customer issues. Every interaction has been frustrating and a waste of time.

I would strongly advise anyone considering renting from this company to think twice. Keeping customers’ deposits without proper communication is unacceptable, and the poor customer service only makes the experience even worse. I definitely won’t be renting from them again.

First week of july 2026 rented a car trough discovery cars. The car was returned on time and in perfect condition, despite this, weeks later, the €1,500 security deposit has still not been refunded. Don't hire with this company they are a scam and give you excuses that they have to wait because of their bank etc.

AVOID AT ALL COSTS!! Magic Islands have not refunded our deposit and now have stopped replying to emails.

We rented a car in Madeira from June 24 to June 29. When we picked up the vehicle, a €1,500 security deposit was charged. We returned the car in perfect condition, with no damage whatsoever, and no issues were raised when the vehicle was inspected.

When we returned the car, we were clearly told that the €1,500 deposit would be refunded within 14 days. It has now been almost 30 days, and we still haven’t received our money.

Holding €1,500 of a customer’s money for weeks after promising a refund is completely unacceptable. We have been forced to start a dispute with our bank, and we are now preparing to file a formal complaint. We never imagined we would have to go this far just to recover our own money.

This company has completely lost our trust. A professional rental company honors its commitments and doesn’t leave customers wondering when—or if—they will get their money back.

If you value your money and your peace of mind, rent elsewhere. There are plenty of other car rental companies in Madeira that deserve your business far more than this one.

Rented a Dacia Logan at Madeira Airport, 24–29 June 2026 (agreement #68090). Car returned on time and in perfect condition — return inspection marked "Car ok", no new damage. To this day the €1,500 deposit has not been refunded.

After several follow-ups, I reached them by phone: I was assured they would contact their bank, "do what was needed" and call me back the same day. No callback, no update, not a single euro returned. Promises made only to buy time.

Given this unjustified retention, I have filed a formal complaint with the CNPD (Portugal's National Data Protection Authority), registered on 24/07/2026. My bank is also involved and will start the recovery process. A formal legal complaint will follow if needed.

The other reviews show these blocked deposits are clearly a recurring problem — I'm far from an isolated case. To anyone in the same situation: I'm willing to help you free of charge to start the process (CNPD, your bank, the European Consumer Centre) and to provide a step-by-step guide. A joint / collective complaint can even be put together — the more of us there are, the stronger the case. Feel free to reach out.

Avoid until this company handles deposit refunds properly. Photograph everything at return, keep every exchange in writing, and watch your account closely.

After weeks of chasing to get my €1500 deposit back, I had to go through my bank! They also tried to charge me for a valet at the end of the car hire due to a few dusty marks and a tissue left on the seat. Do not use this car hire company!

I do not recomand to use this company. I'd been rent a car in June 2026 and even I paid a full insuurence they asked me to pay a £1350 deposit.
I return the car in good conditions, without any issues or damages, with full tank of fuel, under the terms of the lease agreement and after the 3 weeks from returned I didn't receive my deposit back. I send emails and I called but nothings changed.
They are scamers.

Booking reference: 71517259

I hired a car through Planetrentalcars and collected the vehicle from Magic Islands Car Hire in Madeira on 11th May 2026. At collection, I paid a deposit of £1,298.85 by credit card.

We returned the car early, on 16th May 2026, and have the paperwork confirming the vehicle was inspected, there was no damage, and everything was in order. Despite this, my deposit has still not been returned.

I have contacted Magic Islands several times by email and through their contact form, but I have received no response at all.

I have also contacted Planetrentalcars four times regarding this issue. They have never proactively contacted me with an update. When I spoke to them today, I was told they would contact Magic Islands again — apparently for the third time — but this feels like I am simply being passed back and forth with no actual progress or resolution.

This is an unacceptable level of customer service, especially when holding such a large deposit and when the vehicle was returned without any issues. Customers should not have to repeatedly chase companies to get their own money back.

I hope both Magic Islands Car Hire and Planetrentalcars take responsibility, communicate properly, and arrange the immediate return of my deposit.

F R A U D!!!!!
S T A Y A W A Y A T A L L C O S T S!!!!!!!!!!!!!
Very high chances of losing your deposit.
My card was charger 1500 euro for a damage deposit. PLEASE NOTE, they should have blocked this amount on my card and not CHARGED IT. And they should have released it upon the car return without damage. As I did.
From there you enter hell.
Calling and writing to them fist to ask for information and explanations, then to insult and threaten them. At the beginning they seem nice. They say the standard procedure for the return is up to two weeks (btw, why is that? They should not even have taken the money in the first place). That turns into a strict 14 days. Then it turn to 14 business days. Then they stop answering you email and become aggressive on the phone (if you manage to talk with them).
Let’s cut a long story short. It took an investigation from me my credit card company, a letter from my lawyer and 37 long days to have my money back.
It is certain that this company is soon shutting down or going under.
S T A Y A W A Y A T A L L C O S T S ! ! !

Pick up, check-in and car were nice. People at desk nice and helpful. They are reachable by phone. road assistance was arranged. So all good.

Only thing is: 1500 deposit is charged on your account, so not reserved. Cost road assistance is not processed during check out.

Now 3 weeks later and still not resolved. Still waiting for my money to be refunded.

I would suggest not to hire car at Magic Islands (or through Orbit Car Hire)