Downtown Traverse City is small enough to walk comfortably. A rental car is essential if you want to explore the wine trails on Old Mission and Leelanau Peninsulas — there is no meaningful public transport to either. Bike rentals are available from several outfitters downtown, and the Leelanau Trail provides a car-free route northwest toward Suttons Bay.
The Bay Area Transportation Authority (BATA) runs local bus routes within the city and out to some surrounding areas, but the frequency and coverage is limited. Most visitors drive.