Iceland Small Sedans & Economical Car Rentals

Whether you refer to them as compact, sub-compact, or economy, this category of the vehicle consists of the smallest new cars for rental in Iceland. 

Toyota Aygo / Kia Picanto

2019-2020 Model

Let’s start with the smallest of the small sedans. The Aygo / Picanto is a cute little city car that is perfect for families or a group of friends traveling around the Ring Road. This small economical car is a hatchback-type model with four doors which fits up to five adults. There’s also room in the trunk for one or two suitcases. It’s not suitable for F-roads as the vehicle has a 2WD and it comes with both manual and automatic transmission options. With power steering, airbags, and cutting-edge design, this economical vehicle is perfect for both day trips and longer excursions around Iceland. 


from 4.700 ISK

Kia Rio / Dacia Sandero

2019-2020 Model

The new Kia Rio and Toyota Yaris are both larger, slightly more spacious options than the Kia Picanto. Both vehicles make a smart choice for either taking a quick trip in Reykjavik and environs or traveling around the island. Like most economy-sized vehicles, these types of cars get particularly excellent mileage. This is especially important if you are looking to stretch your cash with an economical car option. If you want fuel efficiency at a budget-friendly price, this is the type of vehicle you want. This class of vehicle fits up to five passengers and has power steering, USB ports, climate control, and airbags. Please note that you cannot drive the Kia Rio or the Toyota Yaris on Iceland’s F-roads as they have a 2WD. 


from 5.550 ISK


Kia Ceed / Toyota Auris

2019-2020 Model

The Kia Ceed and Toyota Auris are especially spacious and powerful for compact auto models. With a generous luggage compartment and lots of access to space for five passengers, these vehicles are the largest of the economy class of small cars. As another economic, budget option, these vehicles will save you money on gasoline with their fuel-efficient engines. Ceeds are the best, reliable cars, as are Aurises. Like other compact cars, these two models are ideal for a short day out in Iceland’s countryside or a longer trip around the country. Top prices start at 5.800 ISK per day with options for both a manual or automatic transmission. This 2WD model is not suitable for F-roads. 

from 5.800 ISK

Sedan Rental & Standard Models

Sedans and medium-sized vehicles are the next categories in terms of size & auto space for car rental in Iceland. Vehicles classified here start to venture into standard vehicle territory as well as your more family-friendly station wagon-type vehicle. 

Kia Ceed Sportswagon 

2019-2020 Model

The last vehicle in our small to medium selection of vehicles is the Kia Ceed Sportswagon. As the big brother of the Kia Ceed, this modern update on the classic station wagon features plenty of access to legroom space for up to five passengers to stretch out. There’s also a spacious trunk for fitting all of your luggage. Due to the layout, this model offers superior comfort which is perfect for those hours spent in the car driving from destination to destination. The diesel engine gets around 5 liters per 100 km (around 50 mpg) and is available with a manual transmission for best performance. It’s the perfect mix for those looking for a roomier alternative but who don’t want to overspend. Prices start at 7.900 ISK per day, and this car is a 2WD, so you cannot take it on F-roads. 

from 7.900 ISK


Nissan Qashqai 

2019-2020 Model

Get ready for an adventure with this mini-SUV. Not only is it suitable for F-roads in the Highlands, but it’s also the best sedan for families. It was one of the first crossover vehicles for mainstream family SUVs and is one of the top-selling family vehicles in the UK. So whether your traveling companions are your closest friends, joining you on a family vacation, or even if you’re traveling solo, this vehicle is as versatile as it is stylish. With a fuel efficiency of 7.6 liters per 100 km (around 53 mpg), the Nissan Qashqai vehicle is unparalleled. This sporty SUV comes with both manual and automatic transmission options for the driver and starts at 7.900 ISK per day. It’s an extremely affordable option for up to five people that will take you exactly where you want to go. 


from 7.900 ISK

Small Sedan Cars Iceland

While the distinction is not always clear, I hope these categories and definitions have helped you understand the differences in car rental sizes in Iceland. Armed with a little information, you’ll be able to pick the class of vehicle that’s right for your travel needs and itinerary. The most important thing is the comfort and safety of you and your passengers, so let us know if you have any questions about the auto performance of the different models and have a safe trip. 


When browsing the selection of new vehicles available for car rental in Iceland, it can be a little overwhelming at first. There's a wide variety of cars with lots of different sizes, prices, features, types of transmissions, etc. The right automobile for your road trip depends on many factors, including how many passengers you’re carrying and whether or not you plan on driving on Iceland’s F-roads. When comparing top prices and making a booking, you may notice the different pricing on the vehicles and not be entirely sure what classification or pricing category a particular car falls under. Let’s look at the descriptions of small cars and sedans and see some typical models of these compact cars and medium sized-vehicles.  


Car Category Sizes  


Most car rentals are classified and priced according to their size. The main categories are small cars (subcompact, compact, or economy) medium-sized cars (standard or sedans), and full-size cars, which can seat up to seven passengers comfortably. Within these three main categories, there are also 4x4 vehicles and SUVs. Special cars like these aren’t just classified as one specific type. They can be considered medium or full size, depending on capacity, size, and weight. There are many different terms that are used interchangeably, sometimes correctly and sometimes not. For example, oftentimes when people talk about economy vs compact, they’re talking about the same thing.  


With all the terms available and keeping in mind the lack of a universal standard for rental cars, it’s easy to see why there is confusion among consumers. So is there a difference between an economy vs a compact car? In short, the answer is no. But what about full-size cars vs standard-sized cars? These, on the other hand, are two very different categories. To clear things up, here are the Cars Iceland small and medium-sized cars and sedans available to rent.  

Car Rental Iceland - Iceland Car Rental - Car Hire Iceland

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