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Cheap Rental Cars in Iceland

Renting a cheap compact car allows you to drive the Ring Road of Iceland and see the best natural attractions near Route 1. They're perfect for the budget traveler and let you enjoy flexibility.
Rent the perfect car

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Driver's age

30 - 65

Driver's age: 30 - 65

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I live in: Iceland

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Driver's age

30 - 65

Driver's age: 30 - 65

I live in

I live in: Iceland

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Most Popular Website about Iceland

Most popular cars

Choose from the most popular cars in Iceland

Toyota Aygo 2022 - 2024
4.4
930 reviews

Toyota Aygo 2022 - 2024

Category
Small car
People
5 seats
Large bags
1 bag
Transmission
Manual
Toyota Aygo 2023
4.5
209 reviews

Toyota Aygo 2023

Category
Small car
People
4 seats
Large bags
2 bags
Transmission
Manual
Toyota Yaris 2023- 2024
4.4
930 reviews

Toyota Yaris 2023- 2024

Category
Small car
People
5 seats
Large bags
2 bags
Transmission
Automatic

Verified customer reviews

Read first-hand reviews by customers from across the world

Kate Vlchek

Kate Vlchek

Amazing!
Review of Go Iceland

I could not find the Go Iceland pick up so we called the number and someone came to get us immediately. After leaving Go Iceland rental, warning lights came on the dashboard (wrench and something about the ESC). We turned around and returned to the rental office where they gave us a different car without an issue. While life was sending us curveballs, Go Iceland was helping us out!

Jack Haden

Jack Haden

Amazing!
Review of Lava Car Rental

First time hiring a car, was a bit skeptical about driving in Iceland in December but the whole process was great and super easy!

Chris Thompson

Chris Thompson

Amazing!
Review of Blue Car Rental

Car overall worked well, the warning lights went on with no problem in the actual car which made the last part of the trip a little stressful

Rebecca

Rebecca

Amazing!
Review of Go Car Rental

Everyone was so helpful and informative. Thank you so much!

...

Best car rentals

Check out the best car rental companies in Iceland

4.4
930 company reviews
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4.8
455 company reviews
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4.4
409 company reviews
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4.6
340 company reviews
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3.9
339 company reviews
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4.6
259 company reviews
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4.3
257 company reviews
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4.5
209 company reviews
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4.9
147 company reviews
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Renting Small & Cheap Cars in Iceland

Experience the stunning landscapes of Iceland with the convenience of small & cheap car rentals. Discover the land of fire and ice at your own pace, navigating through picturesque fjords, rugged mountains, and otherworldly landscapes. 

Our fleet of compact and affordable cars ensures that you have the freedom to explore this Nordic gem without breaking the bank.

Whether you're a solo traveler seeking solitude or a couple embarking on a romantic adventure, our small & cheap car rentals provide the perfect solution for budget-conscious explorers.

Maneuver through Iceland's diverse terrain with ease, as our fuel-efficient vehicles guarantee an economical journey. From the vibrant capital of Reykjavik to the remote corners of the island, these cars offer reliability and efficiency, making your road trip an unforgettable experience.

Embrace the flexibility to stop at enchanting waterfalls, geothermal hot springs, and charming villages along the way. 

Our small & cheap car rentals not only provide an affordable means of transportation but also an opportunity to create lasting memories against the backdrop of Iceland's natural wonders.

Choose convenience, affordability, and freedom. Embark on your Icelandic adventure with our small & cheap car rentals.

Frequently asked questions

What sort of cars are small and cheap cars in Iceland?

Small and cheap cars are categorized by their size and price, as well as whether or not they are three years or older. Rental vehicles in this category are generally priced lower than larger or newer models. You can find cars such as Toyota Aygo, Volkswagen Golf, and Ford Fiesta within this section.

What are the most popular small and cheap cars to rent in Iceland?

Among the most popular types of small and cheap cars to rent for driving around the Reykjavik area and the Ring Road are the Hyundai i10, Ford Fiesta, Toyota Yaris, and Volkswagen Polo. Try one of these vehicles if you're looking for the cheapest car rental price.

Can I pick up my small and cheap car at the airport in Iceland?

Yes, there are many rental providers at Keflavik International Airport and Reykjavik airport, where you can pick up your auto rental.

Can I sleep in my small and cheap car?

No, the vehicles in this category are not designed for sleeping. We recommend you rent a camper van if you want accommodation on wheels.

Are these cars suitable for all seasons in Iceland?

These vehicles are best suited to driving around Reykjavik city and the paved roads between Iceland’s towns but may be unsuitable for rural driving in poor weather. Because of this, these cars are not ideal for traveling around Iceland in the winter months. However, they are perfectly suitable for all travel on asphalt roads in the summer months. For further information, check out our guide on rental car sizes in Iceland.

What sort of tires does my small and cheap car in Iceland have?

That depends on the season. After November 1st, all rental cars are provided with winter tires with better grip during snowy conditions. However, your rental vehicles will have regular tires during the spring and summer.

Are small and cheap cars suitable for self-drive tours?

Yes, cars in the small & cheap category are suitable for most summer self-drive tours when there's no snow on the roads and conditions are good. Many of our self-drive tours are along the Ring Road or other paved roads in Iceland's countryside. These roads are suitable for small and cheap cars.
However, most of our winter self-drive tours require a vehicle that can better handle Iceland's winter weather conditions, such as a 4WD car.

Can I go into the Highlands of Iceland with a small and cheap car?

Unfortunately, no. The rental vehicles in this category are not suitable for traveling on unpaved roads such as gravel roads, dirt tracks, or F-roads.
Travelers should be aware that driving one of these vehicles on unsuitable roads will void any insurance and make you liable to pay for any potential damage to the suspension or undercarriage. If you plan to travel on mountain roads (known as F roads) in the Highlands, we recommend renting a 4x4 vehicle.

Are 2WD cars suitable for Icelandic winter road conditions?

Two-wheel-drive vehicles are only suitable on the main roads in Iceland, and a four-wheel-drive is highly recommended for your safety. It can handle the harsh winter conditions in Iceland, such as icy roads, much better than a smaller and lighter car.

What is included with my small and cheap rental car in Iceland?

Rental vehicle inclusions depend on the rental provider, requiring travelers to pay special attention to the ‘included’ section of the rental contract. For instance, some rental agencies provide their vehicles with GPS devices or might have additional rental insurance. Thankfully, all Iceland rentals come with CDW insurance and unlimited mileage. Read our guide on renting a car in Iceland for further information.
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