Haven't seen anything like rent a wreck here and hiring a car isn't as cheap as Europe or the States. I know it might sound a bit extreme, but if you're here for a while, I'd suggest buying a car and then selling it when you're through. High values for used cars means that you will lose very little money, if any - unless of course you got ripped off in the first place or don't take out insurance. If you're coming and going a lot from Lima, you could rent a secure parking spot in modern apartment blocks in Miraflores from $50 a month. Might even be a way to make money - if you want to rent out your SUV to other tourists. One thing, there is a fair bit of paperwork.http://surfingrtw.com/resources/how-to- ... r-in-peru/
I know Peruvians that have been banned from driving or never got a licence and just drive anyway. I've never had any problem with my driving licence, but then again I've never been stopped for anything serious. A small donation to the police benevelont fund seems to sort out most problems. My gf got stopped on the Panamerican for not driving with her lights on during the day, a new law punishable with a fine and points on your licence - whatever fool came up with this stupid law was obviously keen to line the back pockets of Peruvian coppers - ten soles made him go away.
However, you should be fine according to this webpage.http://goperu.about.com/od/gettingaroun ... n-Peru.htm