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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.
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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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Pick-upDrop-off

Driver’s age

30 - 65

Driver’s age: 30 - 65

I live in

I live in: Iceland

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Pick-up time

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Most Popular Website about Iceland

Most popular cars

Choose from the most popular cars in Iceland

Hyundai i10 2018
4.0
322 reviews

Hyundai i10 2018

Category
Small car
People
Seats 5 people
Large bags
1 bag
Transmission
Manual
Toyota  Yaris  2018
4.0
322 reviews

Toyota Yaris 2018

Category
Standard car
People
Seats 5 people
Large bags
2 bags
Transmission
Manual
Renault  Megane Wagon 2021
4.0
322 reviews

Renault Megane Wagon 2021

Category
Station wagon
People
Seats 5 people
Large bags
5 bags
Transmission
Manual

Verified customer reviews

Read first-hand reviews by customers from across the world

Joseph McGillian

Joseph McGillian

Amazing!
18/03/2024, 19:37
Review of Golden Circle Car Rental

The car and service was excellent.

Linda Dunbrack

Linda Dunbrack

Amazing!
16/03/2024, 15:47
Review of Golden Circle Car Rental

I highly recommend Golden Circle Cart Rental for its service and value. We rented a 4WD stick shift which was very nice for our needs. We got door-to-door pickup from the airport, and many helpful tips and recommendations for driving in Iceland and things to see.

Sadhbh Moran

Sadhbh Moran

Amazing!
10/03/2024, 21:22
Review of Blue Car Rental

Amazing service and the car was very comfortable. The staff were very friendly and explained everything clearly for us at the beginning. The only downfall was not getting a confirmation that the car had been returned successfully when we left it back. We left it back early in the morning before they opened. It would be nice to have confirmation that everything was ok. But I would definitely rent from blue car rental again in the future.

HANHO JEONG

HANHO JEONG

Amazing!
09/03/2024, 03:01
Review of Golden Circle Car Rental

I received a compact car at a reasonable price, making it easy to travel around Iceland with no issues. The car was in perfect condition and equipped with advanced options such as USB charging ports, heated seats, a rearview camera, and smart cruise control, making driving long distances in cold weather comfortable. Additionally, there was a discount benefit when refueling at partnered gas stations, and a free shuttle service to the airport was provided. I am 100% willing to use this company again next time.

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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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