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

Perfect! Best rental service ever!

Vitor Antonio - United Kingdom Traveled to Iceland in Apr 2018
8.7 / 10 Thousands of satisfied customers

Northbound is an exceptional Rental company. I was extremely pleased with the customer service and the car was amazing.

AndreC - Germany Traveled to Iceland in Mar 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

Reviews from our Customers

Great overall experience with both, Northbound and Lava Auto Car Rental. Everything was explained clearly, and they were extremely flexible with our requests.

Dacia Dokker was a very good vehicle. It had a solid ride and was very stable on the open road. The snow tires provided excellent traction on snow packed roads and the camper handled cross winds very well. Webasco heater made for a warm nights sleep. It was quieter than some other campers that also had heaters. A second air duct that would blow warm air directly into the sleeping area would take care of the condensation on the van ceiling after a nights sleep. Would rent from Northbound on my next visit to Iceland...

Great experience. The booking process through Northbound was very easy. Upon arrival into KEF airport, we followed the instructions provided and took the shuttle to the Thrifty rental location and were happily surprised with an upgrade to a Ford Galaxy minivan. This worked out perfectly for us as we had a lot of luggage! I would recommend Northbound and if I visit Iceland again will certainly use their services.

Experience was great - easy to compare vehicles online and reserve, and both pickup and return were quick and smooth. Staff was pleasant and helpful - I would definitely choose Northbound again.

Dacia Logan from OCR for 9 days, booked via Northbound. Our experience was excellent!! Picked-up and dropped off from the airport, with only a 5min drive to their office location. The staff were extremely helpful and polite. The hand-over and return were very fast. We drove around the entire Route 1, and then some. The communication before (via email) and during our trip (over phone) was very quick. They were keen to answer all our questions about the car and the rental conditions. Booking via northbound gave us a sizeable discount and FREE GPS...

Great! Easy and straightforward. Prices a fraction of the big names. This is where you should rent from in Iceland.

The car was fantastic! IT more than exceeded our expectations and needs. Also the customer service was unparalleled. Couldn't have been happier!

I can not express how great our experience was with Northbound and Lotus Car Rental. It was seamless and the person that checked us in at the car rental was exceptional. He made sure we had everything we needed, he put our destinations in the GPS, suggested car wifi (used it every day) and made sure we knew our way before we left. The car was clean and handled great as you need that in Iceland!! Can't say enough wonderful things....Thank You!!

On arrival at the car rental office I was given a free upgrade. The upgraded car was brilliant and the service we got was very professional. Booking the car was very straight forward and easy. I would definitely recommend booking through northbound!!

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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