Rent a Cheap Car in Iceland

Economy Car Rental in Iceland

Renting an economy car is the ideal choice if you’re traveling in small groups, are on a budget, or prefer to explore cities and towns. With this affordable car rental, you can use your money more efficiently elsewhere! Explore Reykjavik and neighboring towns, drive around the Golden Circle or Ring Road, or book yourself a treatment at the Blue Lagoon Spa.

Affordable Car Rental

When you rent an economy car with Lava Car Rental, you’ll get discounts on fuel and gas station purchases with our exclusive key tag. Each rental comes equipped with insurance as well, so you can have peace of mind when driving around the island.

Comfortably seat up to five people plus luggage. Confidently navigate your way through narrow streets, park in spots that traditional-sized cars can’t, get more mileage to the gallon with superior fuel efficiency, and save money with an affordable car rental. Book your economy car rental with us today!


Our Models

Hyundai I10

Hyundai I10

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If you’re traveling to Iceland on a budget, explore Iceland’s countryside and cities with the Hyundai i10 2021. Compact, fuel efficient, and comfortable. Seat 5 people comfortably and fit 1 large and 2 small suitcases in the trunk. Extend your trip and take it on the Ring Road to see the coast, mountains, volcanoes, and even glaciers! Complete with Bluetooth, heating, A/C, USB and AUX connectors, and a rear view camera. Check availability today!

  Not suitable for F-Roads.

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6.555 ISK

Price includes unlimited mileage

Approx
45 EUR | 53 USD | 38 GBP

Kia Picanto

Kia Picanto

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Rent a Kia Picanto for your short trip to Iceland. The Kia Picanto 2021 is a compact car that can welcome up to 5 passengers and carry 1 suitcase. This vehicle is a 2WD car ideal for short trips in Iceland in the South part of the country or near Reykjavik. Its small size makes it easy to navigate and to park in the Reykjavik area. Kia Picanto is fuel-efficient and comfortable.

Not suitable for F-Roads.

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7.539 ISK

Price includes unlimited mileage

Approx
51 EUR | 61 USD | 44 GBP

Toyota Aygo

Toyota Aygo

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Rent a Toyota Aygo for your trip to Iceland. The Toyota Aygo 2021 is a small car that can welcome up to 4 passengers and carry 1 large suitcase or 2 small bags. This vehicle is a 2WD car perfect for traveling in Iceland on a limited budget. This car is fuel-efficient (4.1L/100 km), reliable, and comfortable. Equipped with USB/Aux connectors.

  Not suitable for F-Roads.

View info Check availability

7.539 ISK

Price includes unlimited mileage

Approx
51 EUR | 61 USD | 44 GBP


FAQ About Economy Cars in Iceland

What do you call economy cars?

We call economy cars some small and cheap vehicles you can rent. They usually seat up to four passengers, they are lightweight and 2WD cars. Their fuel consumption is very low which makes them great for cities and they are easy to maneuver. In Iceland, they are perfect for traveling in Reykjavik and on main roads in summer.

Are economy cars suited for driving around Iceland?

Economy cars are suitable to drive in Reykjavik and on the main roads in Iceland. For small roads, we would recommend renting 4x4 cars that are more suitable.

Can I go into the Highlands with this type of car?

No, you can't. Economy cars are 2WD vehicles so they are not suitable for the Highlands. Only 4WD vehicles are allowed on those roads. We invite you to check out our 4x4 cars category to rent a suitable car for F-roads. 

What sort of tires do economy cars have?

Cars have winter tires from November to April and summer tires for the rest of the year.

Are the economy cars suitable for Icelandic winter road conditions?

Economy cars are small and 2WD. They can be driven on the main roads all year long but for winter, we would highly recommend renting a 4WD. It is easier to drive with an SUV or 4x4 in winter conditions in Iceland.