If you’re going to rent a car when in Cabo, we’ve heard good things about Cactus Car Rental.
Hacienda el Coyote
Update: unfortunately, Hurricane Odile hit this restaurant hard and they have not reopened. One of our favorites – gone from the Cabo dining scene. 
Great food and excellent service. Amazing selection of tequilas. We’ve had great meals here!
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Taquería “El Paisa”
Taqueria “El Paisa” is another local’s joint. In fact, you’ll likely be the only gringos dining. But, don’t let that dissuade you, as the food is excellent (for a very inexpensive restaurant). This is the exact opposite of the typical “marina” dining experience; very authentic and very inexpensive.
The prices are right, so have fun and experiment. Order a lot of variety, have fun, and give the menu items a try. Menu items include grilled tacos of arrachera and beef, potatoes, quesadilas, vampiros, gringas and more.
A family of four can probably eat for US$30 (and still leave food on the table).
On Leona Vicario (the one-way main street heading south), about five blocks north of Lazaro Cardenas.
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El Pollo del Oro – Thumbs Up!
Very affordable chicken, ribs and fantastic fish burritos. The ambiance is “local Mexican joint” (in fact, we heard it was a former covered basketball court). The prices are right (typically less than US$6 per person) and the food is usually pretty good. While we usually eat here once per visit for lunch or dinner, breakfast was so-so and as a result, we can’t recommend it for that meal.
Located on Morelos and 20 de Noviembre, just north of the marina/mall area by about three blocks.
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Koi Sushi – Thumbs Up!
Koi Sushi is a small sushi restaurant in the San Lucas Plaza (Walmart and Sam’s Club).
We’d heard good things about the place and gave it a try. Excellent!
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Salvatore’s Italian – TOTAL Thumbs Up! ♥♥♥♥♥
Salvatore’s is a MUST DO for any visitor to Cabo. Can you tell by the post title that we LOVE Salvatore’s?
INCREDIBLE Italian food and moderate prices. HUGE portions. Their lasagna special (unfortunately, not served every night) can feed a family of three. The pork shank is incredible.
Try the tiramasu for dessert (order just one; it can easily satisfy the sweet tooth of four people).
In the Siesta Suites Hotel on Zapata. Reservations suggested. Phone: 624-105-1044
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Maria Corona – Thumbs Up!
We recently experienced a couple of dinners at Maria Corona and were pleasantly surprised. The fish chowder was excellent, as was the guacamole appetizer.
We had a party of eight and everyone, no exception, wanted to have dinner again at Maria Corona a few nights later. That says a lot!
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Pesos and Dollars
The Mexican Peso is the official currency however, most merchants will take US dollars (but sometimes at an exchange rate that favors them; the most common is to exchange at 12 pesos to the dollar).
The current exchange rate is approximately 13.5 pesos per US dollar (click here for an update).
We usually pay by credit card and let the issuer handle the conversion. Beware of vendors that quote in dollars but charge your credit card in Pesos — the vendor may convert the transaction at an unfavorable rate and then your credit card will charge to convert in addition. Best to just get quoted in Pesos — in fact, insist on it.
If you need money before your travel to Mexico, try cribbage for money. This can help you save up for your stay and even save up the excess for your next trip!
If you’re heading to Cabo from Canada (and taking advantage of the strength of the Canadian Dollar!), you’ll probably need to convert to US Dollars or Pesos, or risk getting vendor conversion rates based on the “old” rate. That may change in time.
Gordo Lele’s Taco Stand
For fish tacos, a place called Gordo Lele’s is great (just north of the “Corner Bar” on Lazaro Cardenas and south of the Los Milagros Hotel). He also makes a great flank steak for 15 pesos (about US$1.50). A typical meal, with a Corona, is around US$7, but is flank steak healthy?
Javier, the owner, has been known to put on a blonde wig and sing Beatles tunes (see video below).
Lots of people just LOVE Javier. In 2008, Javier lost his lease on a spot he used to occupy and was forced to shut down. In the depths of the huge US recession, a bunch of wonderful folks on the Cabo forum on Tripadvisor banded together, located Javier and raised $5000 to get him back in business at his current location. They also renovated the place with the help of experts like Restaurant Fit Out.
It’s a great story — and so are his fish tacos. 
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TransPacifico
Book your airport transportation here: http://www.heavenincabo.com/airport-transportation/
TransPacifico is a great limo company in the Cabo area. If you’re looking for airport transportation, these are the guys. A nicely dressed gentleman meets you at the airport, holding a sign with your name on it. Well-maintained suburbans whisk you via the toll-road to Cabo. They’ll even stop while you go grocery shopping.
This is the way to begin your Cabo adventure! They’re priced about the same as a cab ride, but you have a newer vehicle and can fit seven people into the Suburban.
You can request their services here: http://www.heavenincabo.com/transportation/