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Most Popular Car in Iceland: What Do Locals and Tourists Prefer?

23-05-2025

A hand holds the keys to a newly rented or purchased Land Rover while looking at that vehicle blurred in the background.

No matter where you go in the world, you’ll find a larger number of certain cars than others. This is because certain vehicles do better in the local economy, climate, and geography. So, what is the most popular car in Iceland? The answer to this question varies depending on your budget and what you intend to see and do during your trip. This guide can help.

Why Some Cars Are More Popular in Iceland Than Others

As you drive around Iceland, you will likely see a lot of larger 4x4s along with some smaller vehicles. The types of vehicles common in Iceland are driven by numerous factors, including the country’s harsh climate in the winter, the gravel roads—particularly in the highlands—and the cost of fuel. If you’re planning a trip, opting for a car rental in Iceland is a smart way to adapt to local driving conditions while exploring the country comfortably.

Many Icelanders choose to have a smaller, more fuel-efficient vehicle for getting around town or between towns to keep their costs lower. However, they are also likely to have one larger 4x4 if they enjoy traveling the country for their summer vacations. Tourists will drive variations of the same for similar reasons.

Best-Selling Cars in Iceland vs. Most Rented Cars for Tourists

When you compare the best-selling cars in Iceland with those rented by tourists, you will notice some similarities but also some differences. For instance, the Dacia Duster and the Hyundai i20 both make the lists for their affordability and durability. 

That’s where the similarities end. For locals, the Toyota Land Cruiser, Kia Sportage, Hyundai i10, and Tesla Model Y are among the most popular options, depending on the needs of the individual or their family. In addition to the Duster and i20, tourists will likely be driving a Toyota RAV4, Suzuki Vitara, or Toyota Yaris.

General view of a Dacia Duster vehicle driving on a paved Icelandic road.

The Top Rental Cars in Iceland: Which One Should You Choose?

When renting a vehicle, you will need to consider more than the most popular car in Iceland. You will also need to consider your itinerary and budget to ensure you choose a car that meets your needs and ensures you have the trip of a lifetime. Here are some of the top vehicles to consider for your trip.

Dacia Duster 4x4

By far, the most common vehicle you will see driven by tourists is the Dacia Duster 4x4. The primary reason is that this vehicle is often cheaper than other options and still allows travelers more flexibility in where they go, including some F-roads. The Duster also has excellent fuel efficiency, with a fuel consumption of about 4.7L/100km.

The Dacia Duster can accommodate five passengers with plenty of leg room. You will need to consider how much luggage you are bringing to ensure this vehicle has enough space for you and the rest of your passengers.

Suzuki Vitara 4x4

Another popular 4x4 option is the Suzuki Vitara. This compact SUV gets excellent fuel efficiency, making it ideal for longer road trips around Iceland. It can also safely drive some of the F-roads, giving you more versatility in your itinerary. 

This versatile SUV is perfect for all types of travelers, from solo visitors to families. The Suzuki Vitara 4x4 is a safe, reliable option, making it perfect for visitors who want to rent a car to get around the country.

General view of a Suzuki Vitara vehicle driving on a paved Icelandic road.

Suzuki Jimny

The Suzuki Jimny is another compact SUV with 4x4 capabilities, allowing you to drive on some F-roads with ease. This SUV is more affordable than the larger options and gives you more flexibility in your itinerary and improved safety in the winter months. 

One of the most attractive features of the Suzuki Jimny is its compact size without losing the clearance to drive some of the easier F-roads. Because of its small size, it is easier to park in the city and can more easily navigate to some areas where a larger 4x4 may have difficulties.

Toyota Aygo

If you’re looking for something smaller and less expensive for your visit to Iceland, the Toyota Aygo may be the ideal option for you. This vehicle gets great fuel efficiency because of its small size. However, because it’s not a 4x4 or AWD vehicle, it isn’t allowed on F-roads. It is perfectly suitable for the main roads and some gravel roads, though.

The Toyota Aygo is easy to navigate and is the perfect option for visitors who wish to hit the main sights and stick to paved roads. In addition to its ease of use, it’s a budget-friendly option that makes a great choice, especially during the summer.

General view of a Toyota Aygo vehicle driving on a paved Icelandic road.

Hyundai Tucson

The Hyundai Tucson is another 4x4 compact SUV that can handle all weather conditions and some F-roads, making it a great choice for those who are a little more adventurous but don’t want to spend a lot of money. You’ll get excellent fuel efficiency and plenty of comfort features for longer road trips.

Some models of the Hyundai Tucson are hybrid. When choosing a hybrid vehicle, you get the benefits of reduced fuel costs without the hassle of charging an electric vehicle each night or at each stop. 

Do You Really Need a 4x4 in Iceland? Pros and Cons

The biggest question visitors have when trying to choose the most popular car in Iceland is whether they truly need a 4x4. The answer to this question varies greatly depending on several factors. Here are the pros and cons of renting a 4x4 to help you make the most informed decision for your needs.

A 4x4 is the best option if you intend to drive any F-roads or are looking for a more rugged vehicle that can accommodate your itinerary changes with ease. You should also consider renting a 4x4 if you are visiting in the winter. While you will still need winter driving experience and follow the weather, a 4x4 can give you more traction and help you on your journey.

However, renting a 4x4 is typically more expensive than a smaller vehicle. You will pay more for the rental itself, as well as the fuel, since fuel efficiency is generally lower for larger vehicles. In the winter, a 4x4 can also give some drivers false confidence. It’s still important to follow the weather and road conditions to ensure your safety.

General view of a 4x4 vehicle driving on a road in the Icelandic Highlands.

Electric Cars in Iceland: Are They a Good Choice for Road Trips?

As electric cars gain popularity in Iceland and around the world, more visitors wonder whether it’s a better choice to rent an electric vehicle for their trip. In general, electric vehicles are best for driving shorter distances, such as around the city. However, for driving longer distances, they may require more frequent charging, which can take time out from your journey.

A better alternative to a fully electric vehicle is to choose a hybrid car. A hybrid vehicle can give you many of the same advantages of an electric vehicle, but it will still require fuel. It will use much less fuel than a traditional vehicle, but you won’t have to worry about finding charging stations or spending valuable time waiting for your car to charge.

How to Choose the Right Rental Car for Your Iceland Adventure

Now that you know about the most popular cars in Iceland, it’s time to choose the ideal vehicle for your adventure. The following will show you the best vehicle based on your itinerary.

Best Car for the Golden Circle

If you will be visiting in the summer months, you can drive the Golden Circle in any vehicle you choose. The roads in this area are paved, allowing you to easily get between the sites with minimal effort. 

While you can still use a smaller vehicle to drive the Golden Circle in the winter, you may want to rent a 4x4 instead to help you navigate icy or snowy roads. The Golden Circle roads are well-maintained and typically cleared quickly, but a 4x4 can give you peace of mind.

General view of a 4x4 vehicle driving on a Golden Circle Icelandic road.

Best Car for the Ring Road

Many visitors choose to drive the Ring Road, particularly if they have more time. Like the Golden Circle, the Ring Road is completely paved, allowing you to easily drive it with any type of vehicle. In the summer, a 2WD vehicle is all that is needed to make your way around the Ring Road, unless you wish to drive some F-roads along the way.

In winter, a 4x4 can be a better option for driving the Ring Road, allowing you to more easily navigate various weather and road conditions. If you intend to venture onto F-roads or other gravel roads along the way, it is better to consider a 4x4 instead.

Best Car for the Highlands (F-Roads)

The F-roads lead into the highlands, taking visitors to untouched parts of the country with amazing views everywhere you look. These roads are rough with rocks and potholes, with unbridged river crossings that can be challenging to traverse. These roads require a 4x4 to drive them. However, be sure to ask your rental company which roads are permitted and which ones are not.

It’s also important to note that not all 4x4 vehicles will do well on all F-roads. You should look for one with high ground clearance to ensure you can get through any obstacles you encounter. Remember, off-road driving is strictly prohibited and comes with high fines. If you encounter an obstacle you can’t drive over, you will need to turn around. Never drive off the track.

General view of a road sign on the Icelandic F-roads indicating the need to drive a 4x4 car in that area.

Best Budget-Friendly Rental Option

If you’re looking for a 2WD vehicle to drive in Iceland in the summer or to drive paved roads in the winter, a small vehicle like the Toyota Aygo and the Hyundai i10 is a great option to keep your costs low. These vehicles are less expensive to rent and more fuel-efficient than larger options.

However, if you need a 4x4 because you intend to drive in the highlands or want more peace of mind in the winter, the Dacia Duster and Suzuki Jimny are among the most cost-effective options. These vehicles have excellent fuel efficiency and more capabilities to drive the F-roads to maintain greater flexibility during your trip.

Conclusion: The Best Car to Rent in Iceland for Your Needs

When it’s time to rent a car in Iceland, it’s easy to feel overwhelmed by the choices you will find on rental websites. However, when you know the most popular car in Iceland and why those vehicles top the list, you will find it easier to make the best decision based on your itinerary, time of year, and your budget. Happy travels!