When traveling around Iceland, choosing the right rental car can make a huge difference. With ever-changing weather, rugged landscapes, and breathtaking scenic routes, having a vehicle that's comfortable, safe, and affordable is key. Based on our experiences, here are our favorite cars to rent in Iceland!

1. Toyota Land Cruiser 250 — Our Top Pick!

Our absolute favorite rental car for Iceland is the Toyota Land Cruiser 250. This vehicle is a perfect combination of spacious comfort and rugged safety — ideal for Iceland’s unpredictable terrain.

• Why we love it: The Land Cruiser 250 is extremely reliable and incredibly well-built. Whether you're tackling rough off-road trails or cruising the famous Ring Road, it can handle it all with ease.
• Comfort: Tons of space for families, groups of friends, and all your luggage — you’ll never feel cramped.
• Safety: Legendary off-road performance, with new levels of luxury, sophistication, and driving comfort.
• Ideal for: Families, large groups, adventure seekers, and those planning to explore Iceland’s Highlands or F-roads.

If you’re looking for a stress-free, luxurious adventure, this is your go-to!

2. Toyota RAV4 — A Versatile Favorite

Next up is the Toyota RAV4, another fantastic choice for Iceland travel.

• Why we love it: The RAV4 offers great ground clearance and can handle most dirt roads and F-roads you might encounter.
• Comfort: Spacious interior perfect for families or groups of friends.
• Safety & Reliability: One of the most popular rental cars in Iceland for good reason — it’s dependable and efficient.
• Ideal for: Families, friend groups, and anyone planning a mix of city and off-road adventures.

If you want versatility and comfort without the size (or cost) of a Land Cruiser, the RAV4 is a smart pick.

3. Toyota Yaris Cross — Small but Mighty

Don’t be fooled by its size — the Toyota Yaris Cross is a little powerhouse!

• Why we love it: It combines the fun of a smaller car with the toughness needed for Iceland’s wild landscapes.
• Performance: Thanks to its Hybrid engine and All-Wheel Drive (AWD) system, you’ll enjoy excellent fuel efficiency while staying safe and steady on rough roads.
• Comfort: Elevated driving position, high ground clearance, and a surprisingly roomy cabin.
• Ideal for: Couples, solo travelers, or small groups who want agility without sacrificing capability.

If you're looking to save on fuel while still confidently exploring beyond the city, this car is a great option.

4. Toyota Aygo — Best for Budget and City Adventures

If you're traveling light, the Toyota Aygo is a charming and practical option.

• Why we love it: It’s more spacious than you might expect and offers a very comfortable drive. Plus, it’s incredibly fuel-efficient and super easy to maneuver.
• Perfect for cities: Navigating Reykjavik's tighter streets and finding parking is a breeze with the Aygo.
• Ideal for: Couples, two friends, or solo travelers looking for a reliable, cost-effective rental.
• Important to note: While it’s amazing for cities and paved roads, the Aygo isn’t designed for Iceland’s rougher F-roads — so stick to main routes and you’ll be golden!

If you're planning to explore the Golden Circle, Reykjavik, or other accessible spots, the Aygo is a budget-friendly gem.