When planning your Icelandic road trip, selecting the right rental car is crucial. For many budget travelers, the decision comes down to choosing and renting a car in Iceland between an economy and a compact car. This guide will explore the key differences between these two popular car sizes, helping you determine which is best suited for your needs.

Whether you’re concerned about trunk space, passenger comfort, or handling Iceland’s unpredictable weather, we’ve got you covered.

A cheap small rental car in Iceland
Compact sized rental car in Iceland

Understanding the Basics: Economy vs Compact Cars

What is an Economy Car?

Economy cars are designed to be budget-friendly with excellent fuel efficiency. These vehicles are slightly smaller than compact cars and are ideal for solo travelers or couples who pack light, and primarily for city driving or short trips around Iceland’s famous Golden Circle or the South coast. Economy cars, such as the Toyota Aygo, Toyota Yaris, Mitsubishi Mirage, are perfect for city driving, offering great gas mileage and easy maneuverability in urban environments.

Key Features of Economy cars

  • Fuel Economy: Economy cars offer excellent gas mileage, helping you save on fuel costs.
  • Trunk Space: While these cars are compact, they provide enough luggage space for 1-2 medium-sized bags.
  • Passenger Comfort: These cars typically offer adequate legroom for front passengers, though rear seat legroom may be limited.
Geysir Strokkur in Icelnad

What is a Compact Car?

Compact cars, like the Volkswagen Jetta, offer a bit more space and comfort compared to economy cars. They are a popular choice for small families or groups of three to four people. Compact cars provide better luggage space, more legroom for passengers, and still maintain good fuel economy, making them a versatile choice for both city driving and longer road trips.

Key Features:

  • Fuel Efficiency: Compact cars also provide good gas mileage, though slightly less than economy cars.
  • Luggage Space: Compact cars come with more cargo space, accommodating up to 3-4 medium-sized bags.
  • Passenger Comfort: These vehicles offer more comfortable seating for passengers in both the front and rear.
driving on the ring road of iceland

Cargo Space and Passenger Comfort: difference between Economy and Compact cars

1. Trunk Space and Luggage Capacity

One of the primary differences between economy and compact cars is the amount of trunk space available. Compact cars generally offer more luggage space, which is essential if you’re traveling with more than one suitcase or planning a longer road trip around Iceland. For example, a Volkswagen Jetta has a larger trunk that can easily accommodate a few suitcases, making it a better option for families or small groups.

Economy cars, while offering slightly smaller trunk space, are still suitable for light travelers. If you’re a couple or solo traveler with minimal luggage, an economy car like the Mitsubishi Mirage may suffice, allowing you to save on rental costs while still enjoying decent cargo capacity.

In short: if you are looking for a larger Luggage Capacity, pick Compact car but not Economy car.

2. Passenger Legroom and Comfort

Passenger comfort is another key consideration. Compact cars typically provide more legroom for rear-seat passengers compared to economy cars. This can make a significant difference on long drives, especially if you’re exploring Iceland’s scenic routes. The extra space in a compact car allows for a more comfortable journey, particularly for passengers sitting in the back.

In short: if you are looking for a larger passenger Legroom, pick Compact car but not Economy car.

Iceland jokulsarlon is one of the must see attraction in Iceland during your trip

Which Car Is Best for Your Iceland Trip?

1. Consider Your Group Size

When deciding between an economy and a compact car, consider the size of your travel group:

  • Solo Travelers or Couples: An economy car may suffice, especially if you’re planning short trips around Reykjavik or the Golden Circle.
  • Small Groups or Families: A compact car is a better choice, offering more space and comfort for longer journeys.

2. Evaluating Road Conditions in Iceland

Iceland’s road conditions can vary greatly, with some areas experiencing sudden changes in weather. While both economy and compact cars can handle city driving and paved roads, compact cars are better suited for less predictable conditions.

  • Winter Driving: Icelandic winters (Nov – March) are harsh, with icy roads and strong winds. For winter travel, renting a compact car with 4WD is recommended for better control and safety.
  • Summer Adventures: During the summer (June – Aug), economy cars are sufficient for driving the Ring Road or exploring popular routes like the Golden Circle. However, a compact car still offers added comfort and cargo space for longer trips.
  • F-Roads: Certain mountain roads in Iceland, known as F-roads, require a 4×4 vehicle by Icelandic law due to their rough and challenging terrain. While economy cars are not equipped for these conditions, a compact 4×4 is suitable for tackling F-roads during the summer months, allowing you to access some of Iceland’s most remote and breathtaking landscapes.
  • Gravel Roads: Many rural roads in Iceland are unpaved. A compact car, particularly one with 4WD, is better equipped to handle these gravel roads, reducing the risk of damage and ensuring a smoother drive.

3. Weather Considerations: Why Choose a 4WD Vehicle?

Iceland’s weather can change rapidly, even in summer. Sudden rain, wind, or snow can make driving challenging. A 4WD compact car offers superior stability and control, especially on gravel roads or in remote areas.

  • Recommended for All Seasons: While economy cars are fine for city driving, we recommend choosing a 4WD compact car for any season to ensure safety and comfort, especially if you plan to venture outside major tourist areas.
seasons in iceland

Explore Iceland with Hertz Iceland

At Hertz Iceland, we offer a wide range of both economy and compact cars to fit your needs. Whether you’re looking for the fuel efficiency of an economy car or the extra space and comfort of a compact car, we have you covered.

  • Economy Cars: Explore our economy car options, like the Toyota Yaris and Toyota Aygo perfect for budget-conscious travelers.
  • Compact Cars: Check out our compact car offerings, including the 4WD Dacia Duster, 2WD Huyndai i30 , ideal for those seeking more comfort and space.
things you should try when in Iceland

Making the Right Choice for Your Iceland Adventure

Choosing between an economy and a compact car comes down to your travel needs, group size, and the road conditions you’ll encounter in Iceland. For shorter trips in summer, an economy car might be just right. However, for added comfort, space, and safety, especially in winter or on longer journeys, a compact car is a better option.

No matter your choice, Hertz Iceland has the perfect rental car for your Icelandic adventure. With our fleet of well-maintained vehicles, including both economy and compact cars, you’ll find the ideal car to suit your trip. Book your rental car with us today and embark on an unforgettable journey across the stunning landscapes of Iceland!

Some economy and compact cars in our fleet

New toyota Yaris 2024

Toyota Yaris or similar | Automatic| 2WD

EDAN | Group: Y (EDAN)

  • 5 Seats
  • Automatic
  • Airconditioning
  • 5 Doors
  • 2 Large Luggage
  • Petrol or Diesel

This vehicle is NOT allowed in the highlands F-roads.You must be 20 years of age to drive this vehicle.

Additional Features
  • 131 C02 g/km
  • Adjustable Steering
  • Electronic Stability Control
  • ABS
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
New toyota Yaris 2024

Toyota Yaris or similar| Manual l 2WD

EDMN | Group: A (EDMN)

  • 5 Seats
  • Manual
  • Airconditioning
  • 5 Doors
  • 2 Large Luggage
  • Petrol or Diesel

This vehicle is NOT allowed in the highlands F-roads. You must be 20 years of age to drive this vehicle.

Additional Features
  • 134 C02 g/km
  • Adjustable Steering
  • Electronic Stability Control
  • ABS
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
New toyota Aygo Iceland

Toyota Aygo or similar| Manual | 2WD

MBMN | Group: Z (MBMN)

  • 5 Seats
  • Manual
  • Airconditioning
  • 3 Doors
  • 1 Large Luggage
  • Petrol or Diesel

This vehicle is NOT allowed in the highlands F-roads. You must be 20 years of age to drive this vehicle.

Additional Features
  • 119 C02 g/km
  • Electronic Stability Control
  • ABS
  • Power Steering
  • Remote Locking
  • Airbags
new Dacia Duster rental car in Iceland

Dacia Duster or similar| Manual | 4×4

CFMN | Group: E2 (CFMN)

  • 5 Seats
  • Manual
  • Airconditioning
  • 5 Doors
  • 3 Large Luggage
  • Petrol or Diesel

Suitable for the highlands. Please read Terms & Conditions. You must be 20 years of age to drive this vehicle.

Additional Features
  • 4 Wheel Drive
  • 139 C02 g/km
  • Adjustable Steering
  • Electronic Stability Control
  • ABS
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
Hyundai-i30-Wagon rental in Iceland

Hyundai i30 Wagon or similar| Manual | 2WD

CWMN | Group: T (CWMN)

  • 5 Seats
  • Manual
  • Airconditioning
  • 5 Doors
  • 4 Large Luggage

This vehicle is NOT allowed in the highlands F-roads. You must be 20 years of age to drive this vehicle.

Additional Features
  • 130 C02 g/km
  • Adjustable Steering
  • Electronic Stability Control
  • ABS
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
VW Golf rental car in Iceland

VW Golf or similar | Automatic | 2WD

CDAN | Group: B2 (CDAN)

  • 5 Seats
  • Automatic
  • Airconditioning
  • 5 Doors
  • 3 Large Luggage
  • Petrol or Diesel

This vehicle is NOT allowed in the highlands F-roads. You must be 20 years of age to drive this vehicle.

Additional Features
  • 138 C02 g/km
  • Adjustable Steering
  • Electronic Stability Control
  • ABS
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags