A vehicle system may include wireless transmitters carried by a vehicle and spaced apart from one another and configured to transmit wireless signals, a portable device configured to receive the wireless signals from the wireless transmitters, and a controller carried by the vehicle. The controller may be configured to wirelessly communicate with the portable device, cooperate with the portable device to determine when the portable device enters into one of a plurality of different zones relative to the vehicle based upon the received wireless location signals, with the zones having different respective vehicle control functions associated therewith. The controller may also be configured to enable the respective vehicle control function associated with the zone entered into by the portable device.