Economy Cars In Iceland

Book a Cheap, Affordable Rental Car From The Top Car Rentals In Iceland


On Northbound you will find one of the largest selections of affordable rental cars in Iceland, from some of Iceland's highest rated car rentals. Compare prices and book with confidence, knowing that you won't sacrifice quality for budget. 

  •     Fast, Secure and Easy Online Booking
  •     All bookings confirmed immediately
  •     Prices as advertised, no hidden fees!
  •     Only 15% deposit, Book now, Pay Later

Compare prices on hundreds of rental cars!We accept all major credit cards!

Find a low-cost rental car

Absolutely perfect customer support! They even bought us new sleeping bags, because the temperatures were dropping lower than expected. They have always been very kind and were responding extremely quick to every mail that I have sent to them. I highly recommend northbound to everyone who wants a great adventure in iceland!

Marcus Aurelius Antonius - Germany Traveled to Iceland in May 2018
8.7 / 10 Thousands of satisfied customers

Used couple while shopping car rental deals in Iceland and found the rates offered by most competitive. In my experience rental company totally honored rates even though direct rental companies' rates were evidently higher. I definitely recommend giving a try!

Andrey - United States Traveled to Iceland in Jul 2018

Why Northbound?

Best Service Guaranteed

We believe in forming long-term relationships with our users, which is why we only partner with suppliers that provide the best possible service. From beginning to end, your journey shall be spectacular.

Easy to Use

The Northbound platform is designed by us from the ground up with user experience in mind so that you may find everything you need to assemble the perfect holiday in Iceland with the simple click of a button.

Instant Confirmation

All bookings are reserved and confirmed immediately, leaving you with peace of mind and security in knowing that your Icelandic journey is waiting for you to arrive as you rent a car or book a tour in Iceland.

Free Amendments

We realize plans can change, which is why all bookings made with Northbound can be modified or cancelled for a full refund after you've booked for no additional charges. Renting a car in Iceland or booking a tour has never been easier!

No Added Fees

You will never experience hidden fees or added booking fees of any sort with Northbound. The total price you see on your voucher includes everything from VAT to road fees, which makes Northbound, truly, the best way to rent a car in Iceland.

Minimum Deposit

When you rent a car with Northbound you only need to leave a small booking deposit to reserve your vehicle. The rest you can pay when you arrive in Iceland.

All these features available, bookable online right now!

  • Unlimited Mileage
  • Free Cancellation
  • Collision Damage Waiver
  • Theft Protection
  • 24/7 Emergency Breakdown Service
  • Third-party Liability Insurance
  • Manual/Automatic Transmission
  • GPS, Child Seats and more extras
  • Many additional Insurance Packages

Spend Less On Your Rental Car

Economy vehicles are ideal for those looking to travel on a budget. From the economical Huyndai i20 to the quick and agile Ford Fiesta or the extremely affordable Toyota Aygo, you can rest assured that you will find the cheapest rental car right here on Northbound.

There's so much to experience in Iceland, and the freedom that comes with driving your own economy rental car allows you the possibility to experience it all in an affordable, exciting way. Compare prices and take the first step into your Iceland journey with Northbound. 


Easy Access Around the Island

Route 1, the circle road that runs the whole way around the island is completely accessible to small hatchbacks most parts of the year. The need for a 4x4 vehicle only rises in the cases of extreme blizzards or highland adventures. 

Choosing a small, cheap hatchback gives you the chance to experience everything on the South Coast and the entire ring road without breaking bank on a large 4x4 vehicle. The majority of the ring road is paved with the exception of a small portion in the south-east corner, but even that is easily traversed by your cheap, smart, economical rental car

Need Help?

If you need any assistance with your booking don't hesitate to contact us and our team of heroes will help you right away.

+354 539 3009

[email protected]

Reviews from our Customers

Northbound helped me find the perfect car for my needs at a great price. I won't hesitate to do business with them again when I go back to Iceland.

Excellent service and vehicle! I would definitely use Northbound again. I particularly liked the way that F roads were allowed by this service so that we could take whatever adventure we wanted in the wonderful country of Iceland!!

TERRIFIC experience with Northbound on our Iceland vacation! Our Renault Trafic High Roof was the best cost-benefit option for us to tour Iceland with detours off the Ring Road on our own time schedule and gave us the ultimate flexibility to stop when and where we wanted for the night. The "dinner box" included was a lifesaver for those days when we found a perfect spot to stop alongside the road and prepare a quick meal. It had everything we needed. Northbound's customer service exceeded our expectations...

I think northbound offers the best relation price-quality. Every thing went just perfect and Liam was very kind to offer me all kind of advices and recomendations which helped to organize the trip. They answer the e-mails in a matter of minutes. I do recomend them without any doubt.

Absolutely PHENOMENAL experience with Northbound on our Iceland vacation! The Suzuki Grand Vitara + Roof Tent deal was such a great deal, a considerably more affordable option to allow the three of us to drive around the Ring Road and see all the great waterfalls/sights. We fit the three of us (28, 22, and 22 years old) guys in the Roof Tent. It was a snug fit, but we made it work. The "dinner box" included was also very helpful, containing a lighter, among other equipment necessary for camping/cooking...

It may seem odd to write a review for a rental company, but this group absolutely made my trip! Everyone was extremely helpful and kind. They gave me game-changing travel tips and free espresso. I will 100% insist that my friends use this company because of the service I received. I already miss my campervan. At the risk of overhyping a rental car company I can say as an absolute fact that the van + tips made the trip the best of my life.

Very good renting experience. All went very well, including booking, picking up the car and returning it and paying for it. Easy, friendly, efficient. The car I got was close to the one indicated; Kia Sportage instead of Hyundai Tucson, great models both of them. The car was fresh and good and 4WD and gave me no problems at all. Northbound is a great enabler for the local car rentals.

Northbound/Wild Campers was the best decision we ever made for our trip to Iceland!! From airport pick-up, to airport drop-off, everything was flawless. The owner of Wild Campers is very friendly and polite and we enjoyed his company throughout the rental process! He was on time for pick-up & drop-off, and very thorough with instructions for the camper, reviewing everything from storage to directions with us. Everything was so clean and readily accessible! The heater was a MUST HAVE at night, as it was pretty chilly, especially with the wind! THANK YOU ALL for giving us the best experience in Iceland! HIGHLY RECOMMENDED!! You're making a mistake if you go with anyone other than Northbound/Wild Campers!!

All was excellent! Picked up at airport as planned and returned to guest house near airport. Van heater was great, stove & cooler worked well. Bed was comfortable. Our parked vehicle was hit while in a mall, the incident was looked after by insurance with no issues and you had all information when we returned. Thanks Northbound and Runar for making our Iceland vacation great. Carolyn and Rob (Alberta Canada)

Who are we?

Northbound is a travel services platform where visitors to Iceland can find everything they need to piece together an amazing experience while in Iceland.

Northbound was established with the main principles of quality service and traveler experience in mind. We aim to become the leading platform in the travel industry in terms of service to the customer.

Northbound is a certified booking service

See our cheapest rental cars

 Frequently Asked Questions


Don't I need a 4x4 to completely experience Iceland?

It'll take you a few years to experience Iceland fully, with everything it has to offer. The only reason you might ever need a 4x4 would be during extreme winters or if the urge to venture up into the highlands strikes you. Most of the roads in Iceland can be easily passed in small economical cars.


So I can drive the entire ring road and the roads to attractions in my hatchback?

Indeed! The entire ring road is passable for the majority of the year and most of the greatest attractions around it such as Seljalandsfoss, Skógafoss, Reynisfjara, Jökulsárlón and the entire Golden Circle are easily accessible to economical cars.


What about the gravel roads? Couldn't the car be damaged?

Of course, the risk of gravel damage is slightly decreased in a raised 4x4 vehicle but that's what the gravel protection is for. We never recommend renting a car without the gravel protection as there are so many gravel roads in Iceland. Better to be safe than sorry.


What insurances do I need?

The insurances are there for a reason. They provide security and peace of mind so that you can enjoy your Icelandic adventure happy and without worry. Each optional insurance targets different scenarios in which the standard CDW does not cover.

  • Gravel Protection
    Most of the roads in Iceland, outside of towns, are not paved. Even Route 1, Iceland’s longest and most driven road, isn’t fully paved. The Gravel Protection usually covers damages from gravel roads to the body of the car, the headlights and the front windscreen.
  • Sand and Ash Protection
    We all remember the Eyjafjallajökull eruption. The fact is, loose ash and fine sand still cover much of the terrain in certain areas of Iceland. As the wind blows, the ash and sand may whirl up and blow towards anything and anyone unlucky enough to be in its path. This may cause serious damages to the car and gives it an undesired, matte finish. Icelandic insurance companies do not cover damages such as this in the regular CDW policies, which is why this protection is offered as an optional damage waiver, covering sand and ash damage to your rental car.
  • Theft Protection
    Iceland may be one of the safest countries in the world but, believe it or not, crime still happens here. The theft protection lowers the lessee’s self-risk down to 0 EUR in the case of vehicle theft. It may be worth it for the added peace of mind. Bare in mind though, in the case of gross negligence this protection may be void.
  • Super Collision Damage Waiver
    An upgrade to the standard Collision Damage Waiver, lowering the self-risk of the lessee considerably. Note: amounts may vary depending which car rental you choose.


Can I drive F-roads in my economy rental car?

No. F-roads are only permitted to certain 4x4 vehicles with sufficient ground coverage. Take a look at our 4x4 selection if the F-roads are of interest to you. 


Can I drive off-road?

No. Off-road driving is illegal in Iceland and will result in a fine, issued by police, of up to 100.000 ISK.



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