Affordable Toyota Yaris Automatic Car Rental in Iceland
Looking for an affordable and fuel-efficient car rental in Iceland for your next holiday? The Toyota Yaris Automatic 2WD is a practical choice for travellers who want a compact, comfortable, and economical vehicle for exploring Iceland’s most popular destinations.
With its automatic transmission, five-door design, and convenient size, the Toyota Yaris is ideal for exploring Reykjavík, visiting the Golden Circle, and discovering attractions along Iceland’s South Coast. It’s particularly suitable for solo travellers, couples, and small groups who want to keep their travel expenses manageable.
If you’re looking for a reliable rental car in Iceland that combines affordability, fuel efficiency, and the convenience of automatic driving, the Toyota Yaris is an excellent option for your self-drive holiday.
Why Choose a Toyota Yaris Automatic Rental in Iceland?
If you want to rent a car in Iceland without spending extra on a larger SUV, the Toyota Yaris Automatic 2WD offers a great combination of practicality, comfort, and value.
This compact economy car is particularly suitable for travellers planning sightseeing trips around Reykjavík and Iceland’s main tourist routes.
Here are some of the main benefits of renting a Toyota Yaris Automatic in Iceland:
- Affordable automatic car rental: A budget-friendly option for travellers looking for cheap car rental in Iceland with an automatic transmission.
- Automatic transmission: Convenient for drivers who prefer an automatic gearbox when exploring Reykjavík, Icelandic towns, and popular sightseeing routes.
- Fuel-efficient engine: Helps keep fuel expenses manageable when travelling between attractions around Iceland.
- Compact and practical design: Convenient for city driving and parking, while offering more passenger access than a three-door city car.
- Practical luggage space: Accommodates up to two large suitcases, making it suitable for couples and small groups travelling with luggage.
- Comfortable for smaller groups: Recommended for up to three passengers, allowing more room for luggage and travel essentials.
- Useful everyday features: Includes air conditioning, standard safety features, and five doors for convenient access.
For travellers comparing Iceland car rental options, the Toyota Yaris Automatic is an excellent choice for those who want a small, economical rental car without the need for four-wheel drive.
Where Can You Drive a Toyota Yaris Automatic in Iceland?
The Toyota Yaris Automatic is a compact 2WD rental car in Iceland, best suited for paved roads, city driving, and popular sightseeing routes.
Explore Reykjavík, visit the famous Golden Circle, or take a day trip to Þingvellir National Park, Geysir, and Gullfoss waterfall.
The Toyota Yaris is also a practical option for exploring Iceland’s South Coast, including popular attractions such as Seljalandsfoss, Skógafoss, and Reynisfjara black sand beach.
During summer, the Toyota Yaris can be used for longer journeys along Iceland’s Ring Road (Route 1), including trips to North Iceland and the Snæfellsnes Peninsula when driving conditions are suitable.
Its compact size and fuel efficiency make it especially useful for travellers planning a budget-friendly Iceland road trip with light luggage.
However, the Toyota Yaris is a 2WD vehicle and is not permitted on Iceland’s Highland F-roads. If you’re planning to explore the Highlands or mountain routes requiring four-wheel drive, you will need a suitable F-road-approved 4×4 rental vehicle instead.
During winter, snow, ice, and strong winds can make driving a small 2WD car more challenging. Always check road.is and en.vedur.is before travelling, and consider a 4×4 rental when additional traction is needed.
Rent a Toyota Yaris Automatic in Iceland with Thrifty
Planning an Iceland holiday and looking for an affordable car rental in Iceland with automatic transmission? The Toyota Yaris Automatic 2WD is a practical choice for travellers who want a compact, fuel-efficient vehicle for exploring Iceland’s main attractions.
Whether you’re visiting Reykjavík for a short break, exploring the Golden Circle, or planning a summer road trip along Iceland’s South Coast, Thrifty Iceland offers budget-friendly automatic rental cars to suit different travel needs.
Rent a car in Iceland with Thrifty and explore the country in a Toyota Yaris Automatic 2WD or similar small car.
Driving in Iceland
Familiarise yourself with how to drive in Iceland. Get trusted tips from locals with a lot of experience.
4×4 Iceland Car Rental Guide
What Makes 4×4 the Most Recommended Car Type for Driving in Iceland
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:
- Government Road Tax: The mandatory fee set by the Icelandic Parliament.
- 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.
