Find a rental agency. Most of the car rental agencies you are used to working with have branches in Mexico. These include Alamo, Avis, Dollar, Budget and Thrifty. Often you can check rates and reserve vehicles online.If you decide to use a local car rental company instead of a major multinational company, be aware that you must proceed with caution and get everything in writing. Depending on where you are going in Mexico, sometimes the local operators are the only game in town.
Buy a vehicle permit from the rental agency. The cost is $15. Even though it is not required in every part of Mexico, buy it anyway and leave it in your windshield at all times. If you are pulled over for any reason, having the permit will give the cops one less thing to hassle you about.
Buy Mexican car insurance. If you pay for your car rental with a credit card, you are automatically covered. It doesn't matter. Pay for the Mexican insurance anyway. If you get into an accident without it, you will see the inside of a Mexican jail. The cops in Mexico are real sticklers for insurance, and there is no shortage of nightmare stories on the Internet from people who had an accident without it. Don't take the chance.
Inspect the vehicle thoroughly with the rental agent and write down every scratch, dent and defect you find. If you do not, you will be expected to pay for them when you return the vehicle and the rental agent does his return inspection.
Return the vehicle with a full tank of gas regardless of the amount of gas the vehicle had when you rented it. Just like in the U.S., the fees to have the agency fill the car up with gas are almost twice what it would cost if you just did it yourself at a gas station.