The market indicators suggest that Summer 2010 will be as bad as 2009 for car hire in the Algarve. The companies are having problems getting lease financing for their fleets so it is a good thing to book early.
As regards saving money on car hire at present, its not worth the effort, at present, as in my opinion, many of the cheaper operators are recycling fleets from previous years, some with some damage etc and then trying to charge renters for damage caused by previous users.
It is better to deal direct with a local reputable rental company...you then know from the start who you are dealing with, what the terms and conditions are and what the price is going to be.
Rental Companies offering delivery at Faro Airport that I have used, know or have good comments on include:
Luzcar - http://www.lagoscarhire.com/
Auto-Jardim - http://www.autocarhire.net/index.php
ZitAuto - http://zitauto.com/ - You have to email them.