Renting a car is one of the best ways to explore Iceland, but it can also take up a significant part of your travel budget. The good news is that there are several ways to save money without giving up the freedom of having your own rental car.
If you’re searching for a cheap car rental in Iceland, choosing the right travel dates, vehicle type and booking method can make a big difference.
Here are five practical tips to help you find an affordable car rental in Iceland and keep more of your budget for the rest of your trip.
1. Travel Outside the Peak Summer Season
The time of year you visit Iceland can have a major impact on rental car prices.
Summer, particularly June through August, is Iceland’s busiest travel season. Demand for rental cars is high, so prices and availability can be less favourable than during quieter months.
If your travel dates are flexible, consider visiting during the autumn, winter or spring. Rental prices can often be lower outside the peak summer period, making these months a good option for travelers looking for a budget car rental in Iceland.
There are plenty of other reasons to consider an off-season Iceland road trip. Autumn and winter bring longer nights and the chance to see the northern lights, while spring offers increasing daylight and fewer visitors than the main summer season.
Keep in mind that driving conditions and daylight hours vary considerably throughout the year, so the cheapest month isn’t necessarily the best month for every road trip.
2. Book Your Iceland Rental Car Directly
When comparing car rental prices in Iceland, it’s tempting to use third-party booking websites. These platforms can be useful for researching your options, but it’s also worth checking the rental company’s own website before making your final booking.
Booking directly makes it easier to see exactly what is included in your reservation, including the vehicle category, protection options, pick-up information and rental terms.
It also means you’re dealing directly with the rental company if you need help with your reservation before or during your trip.
Before booking, compare the total rental cost, rather than simply choosing the lowest advertised daily rate. Check what is included and whether there are any additional charges relevant to your trip.
Booking early can also give you a wider choice of vehicles, particularly if you’re visiting Iceland during summer or other busy travel periods.
3. Choose the Right Rental Car for Your Iceland Road Trip
Choosing the right vehicle is one of the easiest ways to avoid paying for more car than you actually need.
For many Iceland road trips, a small 2WD rental car can be an affordable choice. If you’re planning to explore Reykjavík, the Golden Circle, the South Coast or other popular destinations on main roads, you may not need a larger 4×4.
A 4×4 rental car in Iceland may be a better choice if your itinerary, season or route requires additional capability.
Most importantly, F-roads in Iceland require a suitable 4×4 vehicle. These mountain roads lead into the Icelandic Highlands and are generally only open during the summer. Always check whether your particular rental vehicle is permitted on F-roads before entering them.
If you’re traveling in winter, a 4×4 can also be worth considering depending on your route and expected driving conditions. You can read our essential winter driving tips for Iceland before planning a winter road trip.
Remember that gravel roads are found throughout Iceland and are not limited to F-roads. You do not automatically need a 4×4 simply because part of your route is on gravel.
The best way to save money is to choose a car that suits your actual itinerary rather than automatically booking the smallest or largest vehicle available.
4. Consider an Older-Model Rental Car
If having the newest car isn’t important to you, choosing an older-model rental vehicle can be a smart way to reduce the cost of your Iceland road trip.
Firefly Iceland specialises in affordable rental cars, including older-model vehicles that allow travelers to save money compared with choosing a newer vehicle category.
“Older model” doesn’t mean an ancient car. It simply means the vehicle may not be the newest model year available, helping keep the rental price lower.
Explore Firefly’s cheap rental cars in Iceland to compare the available options for your travel dates.
When comparing vehicles, don’t look at price alone. Think about:
- Number of passengers
- Amount of luggage
- Automatic or manual transmission
- 2WD or 4×4
- Your planned route
- Time of year
- Whether you plan to drive on F-roads
Choosing the least expensive car that still suits your trip can help you get better value from your rental
5. Share the Rental Cost When Traveling with Others
Traveling with friends or family can make an Iceland road trip more affordable because several people can share the cost of the rental car.
Instead of looking only at the daily rental price, calculate the cost per person. A slightly larger vehicle shared between several travelers can sometimes offer better overall value than separate transport arrangements.
Just make sure the vehicle has enough space for both passengers and luggage. Four people with four large suitcases, for example, may need more space than a small economy car provides.
Before choosing your rental car, check the vehicle’s passenger and luggage capacity and select a category that gives everyone enough room for the trip.
How to Get a Cheap Car Rental at Keflavík Airport
If you’re flying into Iceland, starting your road trip with a car rental near Keflavík International Airport (KEF) can be convenient and can help you avoid arranging separate transport into Reykjavík before collecting a car.
Firefly Iceland serves travelers arriving at Keflavík International Airport from its car rental location at Flugvellir 11, 230 Keflavík.
After leaving the arrivals area, follow the route to the Car Rental Shuttle. The shuttle runs between the airport terminal and the car rental area, with Firefly customers using shuttle stop #3.
Booking your rental car for the full trip also means you can start exploring Iceland as soon as you collect your vehicle and return it near the airport before your flight home.
Extra Ways to Save Money on an Iceland Car Rental
A few small decisions can also help keep your Iceland car rental costs under control.
- Book early for popular travel dates. Waiting until the last minute can leave you with fewer vehicle categories to choose from.
- Compare the full rental price. A low headline price doesn’t always tell you what is included, so check the booking details carefully.
- Choose your vehicle based on your itinerary. Don’t pay extra for a larger vehicle if your route doesn’t require one.
- Check the fuel policy. Knowing how the vehicle should be returned can help you plan your final fuel stop.
- Plan your route before booking. Knowing whether you’ll be staying on main roads or traveling into the Highlands makes it easier to choose the correct vehicle from the beginning.
FAQ: Cheap Car Rental in Iceland
- What is the cheapest way to rent a car in Iceland?
To find a cheap rental car in Iceland, compare prices for different travel dates, book directly with the rental company, choose the smallest suitable vehicle for your itinerary and consider traveling outside the peak summer season. Booking early can also give you more vehicle options.
- When is car rental cheapest in Iceland?
Car rental prices can often be lower outside Iceland’s busy summer travel season. Autumn, winter and spring can therefore be worth considering if keeping costs down is a priority. Prices change according to demand, availability, vehicle type and travel dates, so there isn’t one month that will always be the cheapest.
- Is it cheaper to rent a car at Keflavík Airport or in Reykjavík?
The cheapest option depends on your dates and vehicle choice. However, collecting your rental near Keflavík Airport can help you avoid arranging separate transportation between KEF and Reykjavík. Compare the total cost of your trip rather than only the rental car’s daily price.
- Do I need a 4×4 rental car in Iceland?
Not for every Iceland road trip. A 2WD car can be suitable for many popular routes on main roads. However, if you plan to drive on Iceland’s F-roads, you need a suitable 4×4 vehicle. Your route and the time of year should determine which type of car you choose.
- Can I drive the Ring Road in Iceland with a 2WD car?
A 2WD vehicle can be suitable for a Ring Road trip, particularly when traveling during the warmer months. Your vehicle choice should always take the season, weather and your full itinerary into account.
- Are cheap rental cars in Iceland reliable?
A lower rental price doesn’t necessarily mean an unreliable vehicle. Firefly offers older-model rental cars as a way for travelers to reduce costs without paying for the newest models. Always choose a vehicle category suitable for your itinerary.
- How far in advance should I book a rental car in Iceland?
It’s a good idea to book as soon as your travel dates are confirmed, especially for summer and other popular travel periods. Booking earlier usually gives you a wider selection of vehicle categories and makes it easier to find an option that fits your budget.
- Is it cheaper to rent a small car in Iceland?
Small 2WD cars are often among the most affordable rental options. They can be a good choice for one or two travelers exploring popular destinations on main roads. However, you should also consider luggage space, season and your planned route before choosing the smallest available vehicle.
Conclusion: Finding an Affordable Car Rental in Iceland
Finding a cheap car rental in Iceland doesn’t have to mean choosing a car that isn’t right for your trip. The key is to travel at the right time, book early, compare the total rental cost and choose a vehicle based on where you actually plan to drive.
A small 2WD can be a budget-friendly option for many popular Iceland routes, while travelers heading onto F-roads will need a suitable 4×4. Traveling outside the busiest summer months and considering an older-model vehicle can also help keep costs down.
Firefly Iceland focuses on affordable car rental in Iceland, with options for travelers who would rather spend more of their budget exploring the country and less on their rental car.
Check Firefly’s available vehicles and current offers to find a budget-friendly rental car for your Iceland road trip.
