VW Golf Automatic Car Rental in Iceland
Looking for a practical and affordable car rental in Iceland with automatic transmission and enough space for your road trip? The VW Golf Automatic 2WD is a compact rental car that offers a good balance of comfort, fuel efficiency, and luggage capacity.
With its five-door design, automatic gearbox, and space for up to three large suitcases, the Volkswagen Golf is ideal for couples, small families, and groups of friends exploring Iceland. It offers more luggage space than many smaller economy cars while remaining convenient for driving around Reykjavík and other Icelandic towns.
If you’re looking for a comfortable rental car in Iceland for the Golden Circle, South Coast, or Ring Road, the VW Golf Automatic is a practical option for travellers who don’t need a larger SUV or 4×4.
Why Choose a VW Golf Automatic Rental in Iceland?
If you want to rent a car in Iceland with an automatic transmission and additional space compared with a small city car, the VW Golf Automatic 2WD is a great option.
This compact hatchback is particularly suitable for travellers planning longer sightseeing days, multi-day road trips, or holidays where luggage space and fuel efficiency are important.
Here are some of the main benefits of renting a VW Golf Automatic in Iceland:
- Automatic transmission: Convenient for travellers who prefer an automatic gearbox when exploring Reykjavík and Iceland’s main sightseeing routes.
- Affordable compact car rental: A practical option for visitors who want more space than a small economy car without renting a larger SUV.
- Fuel-efficient engine: Helps keep fuel expenses manageable during longer journeys around Iceland.
- Space for three large suitcases: Offers useful luggage capacity for couples, small families, and travellers carrying extra clothing or equipment.
- Five-door design: Provides convenient access to both front and rear seats, making it suitable for small groups.
- Seats up to five passengers: Accommodates five people, although four passengers are recommended for additional comfort.
- Comfortable for longer journeys: A good choice for multi-day sightseeing trips and driving along Iceland’s main highways.
- Useful everyday features: Includes air conditioning, electronic stability control, ABS, power steering, power windows, and remote locking.
For travellers comparing Iceland car rental options, the VW Golf Automatic offers a practical middle ground between a small economy car and a larger station wagon.
Where Can You Drive a VW Golf Automatic in Iceland?
The VW Golf Automatic is a compact 2WD rental car in Iceland, best suited for paved roads and popular sightseeing routes.
Its automatic transmission, practical luggage space, and comfortable interior make it suitable for exploring Iceland’s main attractions, particularly during summer.
Golden Circle
The Golden Circle is one of the most popular sightseeing routes for visitors renting a car in Iceland.
With a VW Golf Automatic, you can explore Þingvellir National Park, the Geysir geothermal area, and Gullfoss waterfall on a day trip from Reykjavík.
The route is accessible using regular paved roads, making it suitable for a compact 2WD rental car when driving conditions allow.
Iceland’s South Coast
The VW Golf Automatic is also a practical choice for exploring Iceland’s South Coast.
Drive along Route 1 to visit Seljalandsfoss waterfall, Skógafoss, Reynisfjara black sand beach, and the village of Vík.
Its luggage capacity makes it useful for travellers planning an overnight stay or a longer South Coast road trip.
Iceland’s Ring Road
Planning to explore more of Iceland?
The VW Golf Automatic can be used for driving along Iceland’s Ring Road (Route 1) when weather and driving conditions are suitable.
This popular route connects destinations across South Iceland, East Iceland, North Iceland, and West Iceland.
During summer, a compact automatic car is a practical option for travellers who want to explore the Ring Road without renting a larger vehicle.
Reykjavík and Nearby Attractions
The VW Golf is also suitable for visitors staying in Reykjavík who want to explore the surrounding area by car.
Its compact size makes it convenient for city driving, while the additional luggage space provides flexibility for day trips and airport transfers.
Popular destinations include the Reykjanes Peninsula, Hvalfjörður, and attractions in West Iceland.
Can You Drive a VW Golf Automatic on F-Roads?
No. The VW Golf Automatic is a 2WD rental car and is not permitted on Iceland’s Highland F-roads.
If you’re planning to visit the Highlands during summer, you will need a suitable F-road-approved 4×4 rental vehicle instead.
For winter travel, remember that snow, ice, and strong winds can make driving more challenging. Always check road.is and en.vedur.is before setting off.
Rent a VW Golf Automatic in Iceland with Thrifty
Planning an Iceland road trip and looking for an affordable car rental in Iceland with automatic transmission and practical luggage space? The VW Golf Automatic 2WD is a great choice for couples, small families, and travellers who want a compact car for sightseeing.
Whether you’re exploring Reykjavík, visiting the Golden Circle, or planning a summer journey around Iceland’s Ring Road, Thrifty Iceland offers affordable automatic rental cars to suit different travel needs.
You can collect your rental car at Thrifty’s Keflavík Airport rental location, reached by the Car Rental Shuttle from the airport terminal.
Rent a car in Iceland with Thrifty and discover the country in a VW Golf Automatic 2WD or similar compact rental car.

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4×4 Iceland Car Rental Guide
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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.


