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Cheapest Car Rental Iceland – From $55/day, No Hidden Fees

At Firefly Car Rental Iceland, we believe that the mesmerizing beauty of Iceland should be accessible to all. Whether you are a group of university students eager to explore the rugged terrains, or a large family looking to make the most out of your vacation budget, we have the perfect car rental solution for you.

Why Choose Firefly for Cheap Car Rental in Iceland?

  • No Hidden Fees – what you see is what you pay
  • Young Drivers 20+ Welcome – no surcharge
  • Unlimited Mileage – explore the Ring Road without limits
  • Award-Winning Service – Booking.com Traveller Review Award 2024 winners
  • Golden Oldies Fleet – reliable older models from $55/day
  • Hertz Iceland–maintained fleet – professionally serviced, Iceland-ready cars
8.7
★★★★

Wonderful · 500+ verified reviews

Booking.com Traveller Review Award 2024

Transparent Prices – Always All-Inclusive

Economy Car

From $55/day

Perfect for city driving and Ring Road trips in summer.

Compact SUV

From $68/day

Best choice for families and longer adventures.

4×4 for F-Roads

From $65/day

Highland-ready for summer mountain routes.

All prices include CDW insurance, unlimited mileage and VAT.

Where to Find Firefly Car Rental in Iceland

We’re just a short shuttle ride from Keflavík Airport (KEF) — no long transfers, no confusion, no stress. Just land, head to our Firefly location, pick up your keys, and you’re ready to go — your Iceland road trip starts faster than you can say “aurora borealis.” ✈️🚗✨

Best Time to Book Cheap Car Rentals in Iceland

Winter Oct–Mar
Lowest rates + fewer tourists. Free winter tires fitted by our in-house mechanics.
Summer Jun–Aug
Peak season — book 2+ weeks ahead to lock the best price for long-daylight road trips.
All Year
Always transparent pricing. Safety first; vibes always.

Is Firefly the right rental for you?

✅ Perfect for

  • Budget-conscious travellers
  • Ring Road & Golden Circle trips
  • Students & young drivers (20+)
  • Solo travellers & small groups
  • Short city breaks in Reykjavík
  • Travellers who don’t mind older cars

⚠️ Consider upgrading if you need

  • A brand-new vehicle
  • Premium or luxury models
  • Multiple pick-up locations outside KEF/RVK
  • Long-term rentals over 4 weeks

Check Hertz Iceland for premium options

Got Questions? Same.

Are there hidden fees?
Nope. What you see is what you pay — CDW insurance, unlimited km, GPS, and an extra driver are all included. No nasty surprises when you pick up the keys. 🙅
Can I rent if I’m under 25?
If you’re 20+, you’re good. No young driver surcharge either — we’re not going to charge you extra just for being the youngest one on the trip. 🚗
Do I actually need a 4×4 in Iceland?
Depends on your plans. Ring Road in summer? An economy car handles it just fine. F-roads or winter driving? Yeah, get the 4×4 — Iceland weather doesn’t care about your itinerary. 🏔️
Why is Firefly so cheap?
Our cars are a few years older — that’s literally it. They’re not fancy, but they’re well maintained by the Hertz Iceland team and they’ll get you to the glacier and back. Sometimes that’s all you need. 🧊
Who maintains the cars?
The same mechanics behind Hertz Iceland — they’ve been keeping cars running here since 1971. So yes, older fleet, but not neglected. Every car gets checked before it goes out. ✅
Where do I pick up my car?
KEF Airport (short shuttle from arrivals — dead easy) or Reykjavík City. That’s it. We keep it simple on purpose. ✈️

Our Cheap Cars – Your Budget-Friendly Gateway to Iceland

Older doesn’t mean unreliable. Here’s why Firefly works for most Iceland road trips.

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Hertz-trained mechanics

Every car is inspected and maintained by the same team behind Hertz Iceland — Iceland’s most experienced car rental mechanics.

🛣️

Built for Iceland roads

The Ring Road, Golden Circle and most popular routes are fully paved. A 3-year-old VW Golf handles them just as well as a brand-new one.

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More money for Iceland

Save on the car. Spend it on hot springs, glacier hikes, and whale watching. Iceland is expensive enough — your rental doesn’t have to be.

How to drive in Iceland

Iceland is a beautiful country to visit and during your stay our main concern is your safety. Although Iceland is considered to be one of the safest countries in the world some conditions are most likely different from what you are accustomed to. We provide you with safe cars but the more you are informed about traveling in Iceland the better.