If you are staying in the down town area, you can walk most places. You can actually walk down the hill from the bus station to down town. If you are unfamiliar with the city and have bags, it's better to get a taxi.
If you book tours, they will provide transportation. There is also a bus system if you want to get out of down town. To see Arraial dâAjuda, take the ferry across the river and take a bus to Arraial.
By Buggy
There are numerous reputable buggy rental companies with offices around the centre of town. Prices range from 60-80 BRL per day.
Steer well clear of the car rental company Terra Matter. Their buggies are very poorly maintained. In the case of a breakdown, they offer absolutely no compensation.