Looking for the best deals on cheap car rental in Iceland? Firefly Iceland brings you affordable, reliable vehicles from just $55/day, with pickup available at our location in downtown Keflavík, just a short shuttle ride from Keflavík International Airport.

Whether you need a compact cheap car for getting around Reykjavik, a rugged 4×4 SUV for highland adventures, or a trusty older model at the low rates, we help every traveler explore Iceland’s sights comfortably and on budget. All rentals include unlimited mileage, 24/7 local emergancy support, and flexible free cancellation—making your Iceland road trip truly hassle-free. Book now to secure the cheap car rental in Iceland and start your journey with confidence!

Economy 2WD Cars – Best for City Roads & Budget Travelers

Our cheap 2WD economy cars are the top choice for travelers searching for cheap car rental in Iceland. Perfect for city streets, short road trips, and the Golden Circle, these affordable rentals are fuel-efficient, easy to park, and excellent for paved roads. Book now to secure the lowest price for your Iceland adventure—ideal for summer holidays, short stays, or anyone wanting the cheapest way to explore Reykjavik and beyond.

Cheap 4×4 Car Rental in Iceland – SUVs for Highlands & Winter Travel

Need a cheap car rental in Iceland that can handle winter or rugged highland roads? Our budget-friendly 4×4 SUVs are designed for Iceland’s challenging F-roads, snowy winters, and gravel trails. Enjoy reliable traction, extra clearance, and peace of mind—without the premium cost. These SUVs are the perfect blend of affordability and performance for adventurous travelers, ensuring you’re ready for any Icelandic weather.

Older Model Rentals – Cheap Cars with Trusted Performance

Looking for the absolute cheap car rental option in Iceland? Choose our older model cars (around 4 years old) for the lowest rates, but without sacrificing safety or reliability. Each vehicle is fully serviced and maintained to high standards—ideal for cost-conscious visitors who want maximum savings, dependable travel, and a stress-free experience.

Why Choose Firefly for Vehicle Rental in Iceland?

Firefly Iceland is your trusted provider of cheap car rentals in Iceland. With years of local experience and a strong reputation for value, we offer:

  • Flexible online booking and free cancellation
  • Pick-up in Keflavík downtown, just a short shuttle ride from KEF Airport.
  • 24/7 local phone emergency support and no hidden fees
  • Cars for every season, route, and budget

Whether you’re driving the Ring Road, exploring Iceland’s natural wonders, or visiting Reykjavik, Firefly helps you travel Iceland for less—making your next adventure easy, affordable, and unforgettable.

DUSTER

Dacia Duster older model (2022-2023) or similar |Manual| 4×4 (EFMN)

EFMN EFMN or similar

  • 5 Passengers
  • 3 Large
  • 5 Doors
  • Automatic
  • Airconditioning
Additional Features
    VW_UP

    VW Up or similar | Manual | 2022-2024 (MBMN)

    Group: Z Reservations are made by car category only. ,We cannot guarantee a specific car model. or similar

    • 4 Passengers
    • 1 Large
    • 4 Doors
    • Manual
    • Airconditioning

    This vehicle is NOT allowed in the highland F-roads.

    You must be 20 years of age to drive this vehicle.

    Additional Features
    • Petrol
    • Front Wheel Drive
    • 95 C02 g/km
    • Adjustable Steering
    • ABS
    • USB
    • Power Steering
    • Power Windows
    • Remote Locking
    • Fog Lamps
    VW-POLO

    VW Polo or similar | Manual (EDMN) 2022-2024

    Group A Reservations are made by car category only. We cannot guarantee a specific car model. or similar

    • 5 Passengers
    • 2 Large
    • 5 Doors
    • Manual
    • Airconditioning

    This vehicle is NOT allowed in the highland F-roads.

    You must be 20 years of age to drive this vehicle.

    Additional Features
    • Front Wheel Drive
    • 99 C02 g/km
    • Adjustable Steering
    • ABS
    • USB
    • Power Steering
    • Power Windows
    • Remote Locking
    • Airbags
    • Fog Lamps
    VW-POLO

    VW Polo or similar | Automatic (EDAN) 2022-2024

    Group: Y Reservations are made by car category only. We cannot guarantee a specific car model. or similar

    • 5 Passengers
    • 2 Large
    • 5 Doors
    • Automatic
    • Airconditioning

    This vehicle is NOT allowed in the highland F-roads.

    You must be 20 years of age to drive this vehicle.

    Additional Features
    • Front Wheel Drive
    • 114 C02 g/km
    • Adjustable Steering
    • ABS
    • USB
    • Power Steering
    • Power Windows
    • Remote Locking
    VW-GOLF

    VW Golf or similar | Manual (CDMN) – 2022-2024

    Group: B Reservations are made by car category only. We cannot guarantee a specific car model. or similar

    • 5 Passengers
    • 2 Large Bags
    • 5 Doors
    • Manual
    • Airconditioning

    This vehicle is NOT allowed in the highland F-roads.

    You must be 20 years of age to drive this vehicle.

    Additional Features
    • 1 Small Bag
    • 2 Large, 1 Small
    • Front Wheel Drive
    • 125 C02 g/km
    • Adjustable Steering
    • ABS
    • Bluetooth
    • USB
    • Power Steering
    • Power Windows
    • Remote Locking
    VW-GOLF

    VW Golf or similar | Automatic (CDAN) – 2022-2024

    Group: B2 Reservations are made by car category only. We cannot guarantee a specific car model.

    • 5 Passengers
    • 2 Large Bags
    • 5 Doors
    • Automatic
    • Airconditioning

    This vehicle is NOT allowed in the highland F-roads.

    You must be 20 years of age to drive this vehicle.

    Additional Features
    • 1 Small Bag
    • 2 Large, 1 Small
    • 138 C02 g/km
    • Adjustable Steering
    • Cruise Control
    • Electronic Stability Control
    • ABS
    • Bluetooth
    • USB
    • Power Steering
    • Power Windows
    • Remote Locking
    • Airbags
    • Fog Lamps
    VW-GOLF-WAGON

    VW Golf Wagon or similar|Manual (CWMN)| 2022-2024

    Group: T Reservations are made by car category only. We cannot guarantee a specific car model.

    • 5 Passengers
    • 4 Large
    • 5 Doors
    • Manual
    • Airconditioning

    This vehicle is NOT allowed in the highland F-roads.

    You must be 20 years of age to drive this vehicle.

    Additional Features
    • Front Wheel Drive
    • 130 C02 g/km
    • Adjustable Steering
    • ABS
    • Bluetooth
    • USB
    • Power Steering
    • Power Windows
    • Remote Locking
    VW-GOLF-WAGON

    VW Golf Wagon or similar | Automatic (CWAN) | 2022-2024

    Group: T2 Reservations are made by car category only. We cannot guarantee a specific car model.

    • 5 Passengers
    • 4 Large
    • 5 Doors
    • Automatic
    • Airconditioning

    This vehicle is NOT allowed in the highland F-roads.

    You must be 20 years of age to drive this vehicle.

    Additional Features
    • Front Wheel Drive
    • 130 C02 g/km
    • Adjustable Steering
    • ABS
    • Bluetooth
    • USB
    • Power Steering
    • Power Windows
    • Remote Locking
    • Airbags
    DUSTER

    Dacia Duster or similar |Manual| 4×4 (CFMN)

    Group E2 Reservations are made by car category only. We cannot guarantee a specific car model.

    • 5 Passengers
    • 3 Large
    • 5 Doors
    • Manual
    • Airconditioning

    Suitable for the highland F-roads. Please read Terms & Conditions.
    You must be 20 years of age to drive this vehicle.

    Additional Features
    • 4 Wheel Drive
    • 116 C02 g/km
    • Adjustable Steering
    • Electronic Stability Control
    • ABS
    • Power Steering
    • Power Windows
    • Remote Locking
    • Airbags
    VITARA

    Suzuki Vitara or similar|Manual| 4×4 (IFMN) | 2022-2024

    Group F Reservations are made by car category only. We cannot guarantee a specific car model. or similar

    • 5 Passengers
    • 3 Large
    • 5 Doors
    • Manual
    • Airconditioning

    Suitable for the highland F-roads. Please read Terms & Conditions.
    You must be 23 years of age to drive this vehicle.

    Additional Features
    • 4 Wheel Drive
    • Adjustable Steering
    • Cruise Control
    • Electronic Stability Control
    • ABS
    • Bluetooth
    • USB
    • Power Steering
    • Power Windows
    • Remote Locking
    • Airbags
    TIGUAN-GREY

    VW Tiguan or similar|Automatic|4×4 (IFAR) | 2022-2024

    Group: OReservations are made by car category only. We cannot guarantee a specific car model. or similar

    • 5 Passengers
    • 3 Large
    • 5 Doors
    • Automatic
    • Airconditioning

    Suitable for the highland F-roads. Please read Terms & Conditions.
    You must be 23 years of age to drive this vehicle.

    Additional Features
    • 4 Wheel Drive
    • 176 C02 g/km
    • Adjustable Steering
    • ABS
    • Bluetooth
    • USB
    • Power Steering
    • Power Windows
    • Remote Locking
    • Airbags
    • Fog Lamps
    SORENTO

    Kia Sorento or similar | Automatic | 4×4 (SFAN) | 2022-2024

    Group: O2 Reservations are made by car category only. We cannot guarantee a specific car model.

    • 5 Passengers
    • 4 Large
    • 5 Doors
    • Automatic
    • Airconditioning

    Suitable for the highland F-roads. Please read Terms & Conditions.
    You must be 23 years of age to drive this vehicle.

    Additional Features
    • 4 Wheel Drive
    • 164 C02 g/km
    • Adjustable Steering
    • Cruise Control
    • ABS
    • Bluetooth
    • USB
    • Power Steering
    • Power Windows
    • Remote Locking
    PAJERO

    Mitsubishi Pajero or similar | Automatic| 4×4 (FFAR) | 2022-2024

    Group: I Reservations are made by car category only. We cannot guarantee a specific car model. or similar

    • 5 Passengers
    • 5 Large
    • 5 Doors
    • Automatic
    • Airconditioning

    Suitable for the highland F-roads. Please read Terms & Conditions.
    You must be 23 years of age to drive this vehicle.

    Additional Features
    • 4 Wheel Drive
    • 213 C02 g/km
    • Adjustable Steering
    • Cruise Control
    • ABS
    • Bluetooth
    • USB
    • Power Steering
    • Power Windows
    • Remote Locking
    LVMN

    Ford Transit or similar |Manual|9 seater (LVMN) | 2022-2024

    Group: Q Reservations are made by car category only. We cannot guarantee a specific car model.

    • 9 Passengers
    • 4 Large
    • 5 Doors
    • Manual
    • Airconditioning

    This vehicle is NOT allowed in the highland F-roads.

    You must be 23 years of age to drive this vehicle.

    Additional Features
    • 172 C02 g/km
    • Electronic Stability Control
    • ABS
    • Power Steering
    • Power Windows
    • Airbags
    No results found for search criteria.

    Frequently Asked Questions – Cheap Car Rental Iceland

    What is the cheapest car rental in Iceland?
    Firefly Iceland offers some of the lowest rental prices in the country, with economy vehicles starting from just 50 USD per day. If you decide to pay in full now, you can lock in the lowest rate we are offering at this moment, making your Iceland trip even more affordable.
    See more about coverage and savings in our rental car insurances and protection packages.
    How can I get the best deal on car rental in Iceland?
    Book early, select off-peak travel dates (avoid June to August for the lowest prices), and consider our older model rental cars for the biggest discounts. If you choose to pay now, you can secure our lowest available rate instantly.
    For driver eligibility and requirements, visit Firefly’s rental requirements page.
    Which car type is best for cheap travel in Iceland?
    Small economy cars and 2WD vehicles are ideal for paved roads, city travel, and summer trips. For winter or highland adventures, opt for one of our affordable 4×4 SUVs—perfect for Iceland’s rugged conditions and unpredictable weather.
    Check all booking details and pick-up info on our car rental booking information page.
    Is unlimited mileage included with cheap car rentals at Firefly Iceland?
    Yes. All Firefly rental cars include unlimited mileage, so you can explore Iceland without worrying about extra charges for distance.
    Get more tips for your Iceland road trip on our Travel Blog.
    Are older rental cars safe and reliable?
    Absolutely! We have our own maintenance team—expert mechanics regularly inspect and service our older-model vehicles (about 4 years old). This ensures every car meets high standards of safety and reliability, even at a lower price.
    What is the minimum age to rent a car in Iceland with Firefly?
    You must be at least 20 years old to rent an economy car and 23 for large SUVs or 4×4 vehicles. All drivers must present a valid driver’s license and a credit card upon pick-up.
    Full details available: car rental requirements.
    Where can I pick up and drop off my rental car?
    Pick-up and drop-off are available at our Keflavík downtown location, between 05:30 and 17:30, accessible by shuttle from Keflavík International Airport (KEF). 
    See all pick-up and drop-off details: booking info.
    Can I cancel my cheap car rental for free?
    Yes! Firefly Iceland provides free cancellation on most bookings, giving you full flexibility if your plans change.
    Are there any hidden fees with Firefly’s budget car rentals?
    No hidden fees. All taxes and mandatory charges are included in our quoted prices. Insurance options and extras can be selected during the booking process.
    See details on fees & protections.
    What documents do I need for a cheap car rental in Iceland?
    You’ll need a valid driver’s license issued in the Latin alphabet or English, a credit card, and proof of age. International permits may be required for some languages.
    See more info here: driver document requirements.
    Is insurance included with my cheap car rental?
    All Firefly Iceland rentals come with basic CDW (Collision Damage Waiver) insurance. You can also buy the MAX coverage package for 0 excess liability and maximum peace of mind on Iceland’s roads.
    For full details, see our car rental insurance information.
    Can I drive your cheap rental cars on Iceland’s F-roads or in winter?
    2WD economy cars are best for paved roads and city travel. For F-roads, highlands, or winter driving, book one of our 4×4 SUVs for extra clearance, stability, and safety.
    Want advice on driving in Iceland? Visit our travel blog.
    What is the best route for a budget road trip in Iceland?
    The Ring Road is Iceland’s most popular route and is perfect for travelers with cheap rental cars. For city breaks, stick to Reykjavik and main roads. Our team is happy to advise you on the best itinerary for your vehicle choice.
    For ideas and inspiration, check our Iceland Travel Blog.