Hyundai i10 or similar | Automatic | 2WD

A Budget-Friendly Automatic Car for Exploring Iceland

Looking for a cheap car rental in Iceland? The Hyundai i10 Automatic is a great choice for solo travellers, couples, and small families who want an affordable, fuel-efficient rental car.

Compact, comfortable, and easy to drive, the Hyundai i10 is ideal for exploring Reykjavík, visiting popular attractions, and enjoying Iceland’s scenic roads without spending too much on your rental vehicle.

With its automatic transmission, practical interior, and low fuel consumption, the Hyundai i10 is one of the most economical options for travellers looking for a budget car rental in Iceland.

At Thrifty Car Rental Iceland, we offer affordable rental cars for visitors who want reliable transportation at a competitive price.

Why Choose a Hyundai i10 Automatic for Your Iceland Trip?

The Hyundai i10 is a popular compact city car, but it’s not limited to city driving. It’s also suitable for many of Iceland’s most popular sightseeing routes when road and weather conditions are favourable.

Its small size makes parking and navigating Reykjavík convenient, while its fuel efficiency helps keep travel expenses down.

Here are some reasons to choose the Hyundai i10 for your Iceland adventure:

• Affordable rental price: A budget-friendly option for travellers looking to save on Iceland car rental costs.
• Automatic transmission: No need to worry about changing gears, making it a convenient option for international visitors.
• Fuel-efficient engine: Helps reduce fuel expenses during your trip.
• Compact design: Convenient for city driving, parking, and exploring popular attractions.
• Five seats: Suitable for couples, solo travellers, and small families travelling with limited luggage.
• Practical for sightseeing: Ideal for paved roads and popular routes such as the Golden Circle and South Coast.

If you’re searching for car rental in Iceland at an affordable price, the Hyundai i10 Automatic offers a practical combination of convenience and value.

What Features Does the Hyundai i10 Automatic Have?

The Hyundai i10 is a five-door compact car with an automatic transmission and front-wheel drive.

Despite its small size, it offers the essential features needed for a comfortable Iceland road trip.

Key features include:

• Automatic transmission
• 2WD (front-wheel drive)
• Five passenger seats
• Five doors
• Air conditioning
• Bluetooth connectivity
• Power steering
• Electric windows
• Anti-lock braking system (ABS)
• Compact luggage compartment

Exact equipment may vary depending on the model year and vehicle supplied.

The Hyundai i10 is best suited to travellers with a small amount of luggage. If you’re travelling with several large suitcases or a full group of five adults, we recommend choosing a larger rental vehicle.

Where Can You Drive a Hyundai i10 in Iceland?

The Hyundai i10 Automatic is suitable for many of Iceland’s most popular sightseeing routes, particularly during summer and periods of favourable weather.

You can use it to explore destinations such as:

• Reykjavík: Discover Iceland’s capital, restaurants, museums, and nearby attractions.
• The Golden Circle: Visit Þingvellir National Park, Geysir geothermal area, and Gullfoss waterfall.
• The South Coast: Explore Seljalandsfoss, Skógafoss, and the village of Vík.
• The Ring Road: Travel around Iceland on Route 1 when road and weather conditions are suitable.
• Reykjanes Peninsula: Explore coastal landscapes, geothermal areas, and attractions near Keflavík Airport where access is permitted.

Although the Hyundai i10 can handle longer journeys, it is a small 2WD vehicle and is best suited to paved roads.

The Hyundai i10 is not permitted on Iceland’s F-roads. These mountain roads require a suitable 4×4 vehicle and are generally only open during summer.

If you’re planning to explore the Icelandic Highlands, we recommend choosing one of our 4×4 rental cars in Iceland.

Is the Hyundai i10 a Good Budget Car Rental in Iceland?

Yes. The Hyundai i10 is an excellent option for travellers who want to keep their Iceland travel costs as low as possible.

Small cars are generally cheaper to rent than larger SUVs and 4×4 vehicles. They also tend to use less fuel, which can make a noticeable difference to your overall travel budget.

The Hyundai i10 Automatic is particularly suitable for:

• Budget-conscious travellers
• Couples visiting Iceland
• Solo travellers
• Short stays in Reykjavík
• Golden Circle and South Coast road trips
• Visitors who prefer an automatic rental car

If you don’t need four-wheel drive or additional luggage space, choosing a compact vehicle like the Hyundai i10 can be a smart way to save money.

When comparing cheap car rental Iceland options, remember to consider the total rental price, including insurance, fuel expenses, and any additional services.

Can You Drive a Hyundai i10 in Iceland During Winter?

Yes, but there are some important considerations.

The Hyundai i10 is a small 2WD vehicle, meaning it does not offer the same traction or ground clearance as a 4×4 SUV.

During winter, Icelandic roads can become icy, snowy, and slippery, particularly outside urban areas.

A Hyundai i10 can be suitable for short journeys around Reykjavík and other well-maintained roads when conditions are favourable.

However, if you’re planning a longer winter road trip, travelling to North Iceland, or exploring rural areas, a 4×4 rental may be a more suitable choice.

At Thrifty Iceland, we offer a selection of affordable 4×4 vehicles for travellers who need additional traction during winter.

Recommended Reading: ‘Do You Really Need a 4×4 Rental in Iceland? A Season-by-season Guide‘

Who Can Rent a Hyundai i10 Automatic in Iceland?

The Hyundai i10 Automatic is a great option for young travellers, couples, and anyone looking for an affordable automatic rental car.

To rent a Hyundai i10 from Thrifty Iceland, the main driver must meet the following requirements:

• Be at least 20 years old
• Hold a valid driving licence for at least one year
• Present a valid passport or accepted identification
• Provide a payment card that meets the rental requirements

An International Driving Permit may also be required if your driving licence is not written in Latin characters.

We recommend booking your rental car in advance, particularly during the busy summer months, when demand for cheap car rentals in Iceland is often higher.

Need More Space? Consider a Larger Rental Car

The Hyundai i10 is an excellent choice for travellers who want to save money, but it may not be the best option for every trip.

If you’re travelling with several passengers, carrying large suitcases, or planning a longer road trip, you may prefer a larger vehicle.

Thrifty Iceland offers a range of rental cars, including compact cars, estate cars, SUVs, and 4×4 vehicles.

Choosing the right rental car depends on your group size, luggage requirements, travel season, and budget.

4×4 Larger Luggage Space option: KIA Sportage 4×4

Station Wagon Larger Luggage Space option: Hyundai i30 Wagon

Why Rent a Hyundai i10 from Thrifty Car Rental Iceland?

When looking for affordable car rental in Iceland, choosing a reliable local company is just as important as finding a good price.

Thrifty Iceland has been operating since 2009 and works in partnership with Hertz Iceland, which has more than 55 years of experience in the Icelandic car rental industry.

We offer practical rental options for travellers who want to explore Iceland without paying more than necessary.

When you rent with Thrifty Iceland, you can benefit from:

• Competitive rental prices: Affordable vehicles for different travel budgets.
• Local experience: Knowledge of Icelandic driving conditions and popular travel routes.
• Convenient airport pickup: Collect your rental car near Keflavík International Airport.
• A wide selection of vehicles: From economical small cars to spacious 4×4 SUVs.
• Unlimited mileage: Explore Iceland without worrying about mileage limits.
• 24/7 emergency assistance: Support if you experience problems during your rental.

Whether you’re visiting Reykjavík for a weekend or planning a longer road trip, Thrifty Iceland helps you find a rental car that suits your travel plans and budget.

---

---

FAQ

• Can you drive a small car on the Ring Road in Iceland?

  Yes, you can drive a small car on the Ring Road in Iceland, especially during the summer months when roads are clear and well-maintained. Just avoid F-roads and highland areas, which legally require a 4×4 vehicle.

• Is a 2WD small car enough for summer in Iceland?

  Yes, a 2WD small car is enough for summer in Iceland, as most main roads and the Ring Road are fully paved and easy to drive. It’s a budget-friendly option for exploring popular routes like the Golden Circle and South Coast.

• What months do I need a 4×4 in Iceland?

  You need a 4×4 in Iceland mainly from October to April during the winter months. You also need a 4×4 during the summer if you plan on exploring the highland F-roads.

• What is the new kilometer tax / road tax fee in Iceland?

  As of January 1st 2026 the Icelandic government is replacing part of the traditional fuel-based road tax with a usage-based system (“kílómetragjald”), calculated per kilometer driven and adjusted by vehicle weight. All vehicles using Icelandic roads, including rental cars, are required to contribute through this kilometer-based charge to support road maintenance and future infrastructure.

• What is the new kilometer tax / road tax fee in Iceland?

  As of January 1st 2026 the Icelandic government is replacing part of the traditional fuel-based road tax with a usage-based system (“kílómetragjald”), calculated per kilometer driven and adjusted by vehicle weight. All vehicles using Icelandic roads, including rental cars, are required to contribute through this kilometer-based charge to support road maintenance and future infrastructure.

• Why is Thrifty Car Rental Iceland charging it?

  The tax applies to all standard passenger cars and SUVs under 3.5 tonnes, as well as heavier vehicles in higher weight categories, with rates defined by law for each class. It applies to both Icelandic residents and visitors, including tourists renting a vehicle from Thrifty Iceland for a short stay or a longer road trip such as the Ring Road.

• Is it included in the daily rate?

  The Road Tax appears as its own line item at these points:

  • On your rental agreement at the check-in desk
  • On your final invoice after drop-off

  This clear separation helps show exactly what portion of your total cost is the government-mandated tax versus your actual rental service.

  The charge applied to your rental agreement consists of two clear parts:

  1. Government Road Tax: The mandatory fee set by the Icelandic Parliament.
  2. Thrifty Service Fee: Covers the administrative cost of processing, reporting, and remitting these taxes to the government.

  	Rate (Per KM)
  Government Road Tax	6.95 ISK (Approx . 0.056 USD / 0.047 EUR)
  Thrifty Service Fee	1.40 ISK (+ VAT) (Approx . 0.011 USD / 0.0095 EUR)

• Where do I pickup my rental car?

  Just head to the Car Rental Shuttle Bus directly outside the terminal. This shuttle takes you to the car rental area just outside of Keflavik Airport. Here you will find Thrifty Car Rental, which is located in the same building as Hertz Car Rental, Dollar Car Rental, and Firefly Car Rental. Thrifty is backed by Hertz Car Rental, which has over 55 years of local experience in Iceland having first opened here in 1971. Bringing decades of experience.

  We also have pickups available at Reykjavik Domestic Airport, Akureyri, Egilsstaðir, and Ísafjörður.

• What is your cancellation policy?

  In case of a cancellation, the rental needs to be cancelled more than 3 days prior to rental pick up for a full refund.

  If a rental is cancelled with less than 3 days notice or in case of no show the full rental price will be charged.

  • 3 days or earlier – Full refund
  • Less than 3 days  – Non refundable

  If you need to cancel your prepaid reservation please do so by sending an email to thrifty@thrifty.is stating your name and reservation number.