Rent a Cheap Car in Iceland
Book an economy rental car for an affordable trip to Iceland and explore Reykjavik and other Icelandic cities along the Ring Road! The small 2WD vehicles are the best car rental choices for travellers who are looking to explore Iceland on a budget in the summertime. With a cheap Iceland car rental, you can use your money more efficiently elsewhere!
Renting an economy car in Iceland allows you to drive on all paved roads around the country. If you are visiting Iceland during the summer season (from May to early September), as a solo traveller or in a small group of two, or are looking for a cheap rental vehicle in Iceland, a 2WD small car will be the best choice for you.
Small 2WD cars can comfortably seat up to five people plus one large luggage. With the back seats down, the trunk capacity can be expanded and fit more suitcases. Our economy rental cars come equipped with insurance as well, so you can have peace of mind when driving around the island.
Our small economy cars can confidently navigate your way through narrow streets and bring you to your destination in safety and comfort. Not to mention that you can also park in spots that traditional-sized cars can’t and get more mileage to the gallon with superior fuel efficiency.
Explore Reykjavik and neighbouring towns, drive around the Golden Circle or book yourself a treatment at the Blue Lagoon spa! With a cheap rental car in Iceland, you can visit the most famous natural wonders on Route 1 such as the waterfalls on the South Coast, the Jökulsárlón glacier lagoon, the Diamond Beach, and much more.
At Lava Car Rental, we offer automatic cheap 2WD cars in Iceland, being the compact, fuel-efficient and reliable Hyundai I10 our most popular option.
Are you planning a short stopover trip to Iceland? Save money and book your economy car rental in Iceland today!
Our Economy Cars
Hyundai i10
Explore Iceland’s countryside and cities and travel on a budget with the Hyundai i10. Compact, fuel-efficient, and comfortable, it seats 5 people comfortably and fits 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 the glaciers of Iceland! Complete with Bluetooth, heated seats, air conditioning, USB and AUX connectors, and a rearview camera. It runs on gasoline. Not suitable for Highlands.
9.500 ISK
Price includes unlimited mileage
Approx
64 EUR
|
59 USD
|
55 GBP
Toyota Aygo
The Toyota Aygo is a small city car, and a perfect option to explore Iceland’s countryside and cities on a budget. Compact, fuel-efficient, and comfortable, it seats 4 people comfortably and fits 1 large or 2 small suitcases in the trunk. Travel the Ring Road to see the coast, mountains, volcanoes, and even the glaciers of Iceland with an affordable city car! Complete with Bluetooth, Apple/Android car play, air conditioning, USB, cruise control and a rearview camera. It runs on gasoline. Not suitable for Highlands.
5.890 ISK
Price includes unlimited mileage
Approx
40 EUR
|
42 USD
|
35 GBP
Dacia Sandero Stepway
The Dacia Sandero Stepway is a compact and comfortable city car, a great option to visit Iceland's countryside and cities on a budget. It seats up to 5 people along with 1 large and 1 small suitcase, perfect for couples or small groups. The 2WD vehicle comes with automatic transmission and is equipped with a rearview camera, cruise control, emergency brake assist, A/C, heated seats, touchscreen, and Bluetooth. It runs on gasoline. Not suitable for Highlands.
7.595 ISK
Price includes unlimited mileage
Approx
50 EUR
|
54 USD
|
45 GBP
Dacia Jogger
The Dacia Jogger is a reliable, comfortable, and spacious family car. It accommodates 5 passengers with up to 3 large and 1 small suitcase OR up to 7 passengers. The 2WD Dacia Jogger comes with manual transmission. It is equipped with the latest safety and technology features such as a rearview camera, cruise control, emergency brake assist, A/C, heated front seats, touchscreen, and Bluetooth. It runs on gasoline. Explore the main locations along the Ring Road with the Dacia Jogger. Not suitable for Highlands.
7.967 ISK
Price includes unlimited mileage
Approx
53 EUR
|
57 USD
|
47 GBP
MG EHS
The MG EHS is an efficient, comfortable car with a sporty appearance. Spacious, it seats up to 5 people along with 2 large and 2 small suitcases, ideal for couples or small groups visiting the main locations in Iceland. The 2WD vehicle comes with automatic transmission and is equipped with a rearview camera, cruise control, emergency brake assist, A/C, heated front seats, touchscreen, USB and 12V connector, and Bluetooth. It runs on gasoline. Not suitable for Highlands.
8.879 ISK
Price includes unlimited mileage
Approx
59 EUR
|
63 USD
|
52 GBP
Renault Trafic
The Renault Trafic is an efficient and comfortable 9-person van, ideal for larger groups traveling together in Iceland. Spacious, it can fit up to 8 large and 2 small suitcases. The 2WD van is easy to drive and can get you to the main locations around the island. The Renault Traffic comes with automatic transmission and is equipped with a rearview camera, cruise control, emergency brake assist, A/C, heated driver seat, touchscreen, USB and 12V connector, and Bluetooth. It runs on diesel. Not suitable for Highlands.
17.884 ISK
Price includes unlimited mileage
Approx
118 EUR
|
127 USD
|
105 GBP
FAQ About Economy Cars in Iceland
What do you call economy cars?
We call economy cars small and cheap vehicles that you can rent in Iceland. They usually seat up to four or five passengers, they are lightweight and 2WD cars. Their fuel consumption is very low which makes them great for cities and they are easy to drive. In Iceland, they are perfect for traveling in Reykjavik and on main roads in the summer.
You can read more information about renting an economy car in Iceland in our complete guide.
Why should I rent an economy car in Iceland?
Economy cars are the cheapest car rentals in Iceland and the best transportation option for travellers who want to visit Iceland on a budget.
Are economy cars suited for driving around Iceland?
Economy cars are suitable to drive in Reykjavik and on the main roads in Iceland. For gravel roads and detours, we would recommend renting 4x4 cars that are more suitable.
Are 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 highly recommend renting a 4x4 vehicle. It is easier to drive with a 4x4 or SUV with higher clearance in winter conditions in Iceland.
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 4x4 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 tyres do economy cars have?
Economy cars come equipped with winter tyres from November to April and summer tyres for the rest of the year.
Are economy cars safe to travel in Iceland?
Yes, economy cars are safe to drive on paved roads in Iceland under regular weather and road conditions. If you are travelling in the winter season, though, we highly recommended renting a 4x4 car for improved safety when driving on ice or snow.