In town, going on foot or using the buses are the best option. Note that non-residents are not allowed to drive in the old town, and this is strictly enforced by CCTV.

Bus

A new bus service - "Linea Verde" - now serves the streets of the Old Town .  This is particularly useful for the more elderly resident or visitor, who may find walking on the cobbled streets troublesome.  Look out for the portable, green bus stops marked Fermatarmata."  The service provided by the little, narrow bus is quite frequent.

Taxis

Taxis in Alghero, although prices are controlled by law, are very expensive. One exception is if you are not renting a car and want an easy transfer from the airport to your accommodation. Especially with several people with luggage, it is a more efficient option than the bus, albeit at a price (about €25 to central Alghero). You can either telephone or pick one up at the many taxi ranks.

For those travelling in larger groups, who do want to hire a six or seven seater taxi, of which there are very few in Alghero; the following are two very reliable options that should be booked in advance:

Bicycles, Scooters, Mopeds, etc.

Bicycle (Not for under 16 years) motorcycle, scooter and moped rental is easily arranged. Cicloexpress, www.cicloexpress.com at the Lido end of the port, is the main player, but you may be able to arrange a deal where you are staying. Another rent motorcycle it's located in airport, MotorentSardinia  offers the possibility to book online. Link site it's www.motorentsardinia.com

Rental Cars

If you are staying more than a couple of days, and want to explore the area (or indeed any part of Sardinia ), you will need a car. For example, the road from Alghero to Bosa is one of the most beautiful corniche drives in the world.

It is worth bearing two things in mind. The first is that automatic cars are not common in Sardinia. If you require an automatic, you will probably need to use one of the majors (but check the smaller local options just in case). Secondly, especially if you are coming from North America, cars are much, much smaller than you will be used to. If you book the cheapest option, you may be presented with a two-seat SMART car. While these cars are perfectly capable of dealing with any road on the Island (and indeed on small, twisty roads they are very good) and they are safer than many larger cars, you may be put off by the small size. Be absolutely sure of what you are booking to avoid surprises when you arrive. If you need a four-door car, specify this, as well as any other requirements. Especially at peaks times, the rental company may not have an alternative on hand. 

A local option at the airport is Autonoleggio Sardinya , a Sardinian company. They can be booked online, where you can check rates and what's included. Where they have an advantage over the local Alghero options is that they are also present all over the island, which is useful if you are travelling around the Sardinia and need support wherever you are. They also do one way rentals to any of their locations in Sardinia, including all the airports and the Santa Teresa ferry port. 

A local option at the airport external is Aigua Rent a Car Alghero   Autonoleggio  is a hire car company in Sardinia and in particular Alghero, Located directly opposite the airport Località Aeroporto, 125   having the convenience of being able to leave the car, or take the car outside office hours.  

Another option in Alghero city is  Rent A Car Autonoleggi , Via Giuseppe Garibaldi 45A,  the main road leading from the Lido district to the Old Town. Their office is set back from the road, immediately opposite the chandler and boat dealers named Centro Nautisport, which is the white building located on the promenade outside the marina. Enrico speaks perfect English.  They have a selection of cars with automatic transmission.

1. AVIS (www.avis.com)

2. Budget (www.budged.com) 

3. Hertz (www.hertz.com)

Parking Info

If parking is not provided where you are staying, there are free parking lots down by the port, but don't leave anything valuable in the car. (There's not much crime but it's good to be careful.) There are lots on both sides of the road, but note that the one on the side away from the sea has a market on Wednesdays, and parking is restricted from the evening before. There are signs, but they are small and only in Italian. Do not park in the part of the port that is under the walls of the old town. Parking here is strictly reserved.

Elsewhere parking may be restricted either by length of stay (for which you need a parking disk which your rental car should have) or it is pay parking. In either case such parking is indicated by blue lines and signs (again only in Italian) indicating the restrictions. Where it is paying, there is a person who will take your money and give you a ticket to put on your dashboard. It's not expensive, less than a Euro an hour. In both cases, parking is regulated only from about 9am to 1pm, and again from about 4pm to 8pm. It is usually free or not time restricted at other times, but check the signs in each area for details.

Driving in and around Alghero is not a problem, although there can be congestion at peak times.

Note that driving and parking in the historic centre, or Old Town is strictly for residents only. Many streets are pedestrianised. CCTV cameras were installed in May 2006, which are linked to an ANPR system at the local police station.  Within 3 days of entering the historic town centre, you or your hire company will receive a fixed penalty notice. Whilst this may be OK if you are driving on out of country plates, the local police will stop you at a later date if they see you driving in the town.