Summarise (click here)
Car Specs
- Seats up to 9 passengers (1 driver + 8).
- Automatic transmission.
- 4×4 (all-wheel drive) for extra traction.
- Space for 7 large suitcases + 2 small bags.
- Air conditioning and modern comfort features.
Who It’s Suitable For
- Large groups or families traveling together.
- Travellers who want space, comfort, and capability in one van.
- Great choice for long guided road trips around Iceland.
Where It Can Go in Iceland
- Ideal for the Ring Road (Route 1) and major paved touring routes.
- Great for the Golden Circle, South Coast, and other scenic drives.
- Allowed on F-roads (highland mountain roads) in summer when open.
- Not for off-road driving outside marked tracks.
Good to Know
- 4×4 capability makes it suitable for varied conditions including winter roads.
- Best for groups wanting to explore Iceland’s main attractions together.
The 9 seater Volkswagen Caravelle van is a perfect passenger van for larger groups and families travelling together. Unlike the other vans, this automatic Volkswagen Caravelle is surprisingly manageable to control and drive. You can effortlessly drive this passenger van and visit Iceland’s famous attractions along the paved ring road (some might call it Iceland’s circle road). You can also see the hidden gems accessible only with gravel roads or even with F-roads (mountain roads) in summer.
Rent A Minivan That Is Allowed on F-roads in Iceland – Perfect For Group Travel
The Volkswagen Caravelle 4×4 rental in Iceland is one of the best vans for large groups, seating up to 9 passengers (1 driver + 8). With its strong 4WD capability, it’s ideal for road trips across the Ring Road, Golden Circle, or even venturing into Iceland’s Highlands during summer when F-roads are open. Spacious, reliable, and comfortable, the Caravelle is a top choice for families or groups looking for a powerful van that combines passenger capacity with the ability to handle Iceland’s diverse road conditions.
This 9-seater van is allowed on F-roads, giving travelers access to highland routes, but off-road driving outside marked tracks is strictly forbidden. For safety, river crossings should only be attempted by experienced drivers. To rent the VW Caravelle, drivers must be at least 23 years old, hold a valid license for one year, and present a credit card in the renter’s name. An International Driving Permit (IDP) is required if the license is not in Roman script. For groups wanting comfort, space, and 4×4 power, the VW Caravelle is one of the most recommended rental vans in Iceland.
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
- Is the VW Caravelle 9-seater suitable for driving in winter?
Yes, the Caravelle’s 4×4 system makes it suitable for winter driving on main roads when equipped with seasonal tires. Drivers should still take extra care on icy or snowy routes.
- Can I drive the VW Caravelle minivan on F-roads?
Yes, the VW Caravelle 4×4 is allowed on F-roads, giving you access to Iceland’s highlands during the summer season. However, off-road driving outside marked tracks is strictly forbidden.
- 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?
Our desk is located directly inside Keflavik International airport.
Just head to the Hertz rental desk in the arrivals hall, and you will be hitting the Icelandic roads in no time. Thrifty is serviced by Hertz Iceland, so everything is in one easy spot and to the highest standard.
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.
