Despite its expensive reputation, it is possible to find a cheap Reykjavik car rental for your trip to Iceland!
While Firefly Iceland Car Rentals are some of the most budget-friendly options in the country, there are a few different ways to find cheap rental cars in the Land of Fire and Ice.
This guide will help you find the best rental car in Iceland for your budget. Whether you’re flying into Keflavik International Airport or picking up from downtown, here’s how to save money and drive with confidence.
Step 1: Start Your Search Online Like a Pro
1. Compare Prices on Rental Websites
The first tip for finding a cheap rental car in Reykjavik Iceland is using a price comparison site like Kayak, Skyscanner, or Momondo. You’ll compare vehicles from all of Iceland’s car rental companies and have a better chance at snagging a good deal.
However, please note: while comparison sites may list tempting offers, it’s often cheaper to rent directly from companies like Firefly Iceland for the best deals and customer service. Third party sites often charge extra service fees that you would otherwise avoid if you book with the company itself!
2. Look Beyond International Chains
Instead of sticking to international brands like Alamo or ACE, local Icelandic car rental companies, like Firefly, often have better flexibility, unlimited mileage, and a minimum rental period that fits short and long trips alike.
Many local car rental companies, including Firefly Iceland, have a no-hidden-fee policy which means that you won’t have any unexpected surprises or hidden costs when you show up to the counter.
Step 2: Pick the Right Time to Rent a Car in Reykjavik
1. Avoid Peak Seasons for the Best Prices
Demand for rental car spikes in the summer season, from June to August, which is the busiest time of year for tourists in Iceland. This means that prices also soar and you’ll need to book your rental car months in advance.
- Read more about Iceland summer months: Iceland in June; Iceland in July ; Iceland in Aug
Prices are more reasonable in the spring and autumn and you’ll find a bit more availability depending on the month.
- Read more about Iceland spring and autumn months: Iceland in April; Iceland in May; Iceland in Sep; Iceland in Oct
Winter in Iceland brings rental car deals, including for 4WD vehicles, but road conditions might require more caution and you’ll want some previous winter driving experience under your belt.
- Read more about Iceland winter months: Iceland in Nov; Iceland in Dec; Iceland in Jan; Iceland in Feb; Iceland in Mar
2. Be Flexible with Your Travel Dates
Travelers who can be flexible with their travel dates will find better rental rates as well. Shift the pick-up/drop-off dates to weekdays and you’re almost guaranteed to save money!
Firefly Iceland has seasonal discounts and special deals for those who book early, another way that you can save money on your Reykjavik car rental.
Step 3: Choose the Right Car for Your Iceland Adventure
1. Small Cars = Big Savings
For travelers who are planning to stick to Reykjavik and the Golden Circle, a small, compact car or economy vehicle will be your most budget-friendly option. There’s no need for 4WD vehicles as the roads to reach these areas from the airport are paved roads and well-maintained.
2. Consider Car Size Based on Travel Plans
What kind of traveler are you? A budget backpacker? Traveling with a group? This will impact the cost of your rental car, too.
Budget travelers have the benefit of being able to stick to small, fuel-efficient cars which are great for city driving and for areas like the Golden Circle or South Coast in summer.
Groups and those planning long road trips around the Ring Road will need a larger vehicle for added comfort.
Adventure travelers will likely want to opt for a 4WD vehicle that’s perfect for exploring off-the-beaten path areas like the Westfjords and the Highlands.
Luckily, Firefly Iceland offers affordable options no matter the kind of vehicle you need. Their fleet of well-maintained yet slightly older models means that you’ll get a dependable rental for less than most of the competition.
Step 4: Take Advantage of Discounts and Deals
1. Sign Up for Special Offers & Loyalty Discounts
One factor that many travelers don’t consider is that companies offer email-only deals and discounts for returning customers. If you regularly rent cars through the same company or you’ve visited Iceland before, double check to see if they offer a price break.
2. Look for Package Deals with Accommodation
You can also find package deals that include both your hotel and rental car in one. Bundling two of your biggest expenses can drastically lower overall trip costs, so it’s worth it to check!
Firefly Iceland partners with local accommodations that offer bundled discounts. Get in touch to see which deals are currently being offered!
Step 5: Lock in Your Cheap Iceland Car Rental Early
1. Why Booking in Advance Saves Money
As your trip gets closer, prices for rental cars will start to skyrocket, especially during the peak summer season.
Book your rental car at least a few months in advance (if not more) to ensure you secure the best deals on Firefly’s cheapest cars.
2. Tips for Finding the Best Rate
To find the best car rental rates in Iceland, don’t book last minute. The cheapest options typically sell out first, which means you’ll be missing out on all the deals.
Luckily, Firefly Iceland has a flexible cancellation policy which means you can book early without having any commitment stress!
Bonus Tip: Do You Need a Car in Reykjavik?
While public transport in Reykjavik exists, it’s limited and not ideal for sightseeing outside the city. Renting a car gives you freedom, flexibility, and access to incredible nature—on your schedule.
Just be sure you meet the age requirement (you must be at least 20–23 years of age depending on the car type) and always follow Icelandic speed limits and road signs.
Drive More, Spend Less with Firefly Car Rental Iceland
Getting a great deal on a Reykjavik car rental is easier than you think—just follow the tips above:
- Compare prices
- Book during off-season
- Choose the right vehicle for your trip
- Take advantage of promotions
- Lock in your car early
Firefly Iceland makes renting a car simple, affordable, and transparent. With no hidden fees, easy airport access near Keflavik International Airport, and cars for every kind of traveler, you can focus on the journey, not the fine print.
Ready to hit the road? Book your rental car in Iceland today with Firefly and experience Iceland your way.
