Economy Rental Cars
Travelers planning a self-drive tour of Iceland can save money and travel freely by choosing an economy rental car.
Economy cars offer a budget-friendly way to explore Iceland’s breathtaking landscapes, from Reykjavik city streets to the famous Ring Road, without breaking the bank.
These compact vehicles are affordable, fuel-efficient, and easy to drive, making them ideal for visitors who want reliable transportation at a low cost.

Book your rental car in Iceland here.

Budget-Friendly Rentals for Iceland Explorers
Economy car rentals in Iceland are prized for their affordability. With lower daily rates than larger 4x4s or luxury models, a cheap economy car lets you stretch your travel budget further.
You can allocate more of your funds toward unforgettable Icelandic experiences – whether it’s relaxing in the Blue Lagoon or dining out in Reykjavik – instead of on transportation.
Saga Car Rental’s economy fleet provides quality cars at affordable prices, so you don’t have to overspend to enjoy a comfortable ride.
Fuel-Efficient 2WD Cars
One of the biggest benefits of economy cars is their fuel efficiency. Gasoline in Iceland is expensive, so driving a car with good gas mileage can save you a lot on a long trip.
Saga Car Rental's economy fleet features fuel-efficient models (like the Mazda 2, Ford Puma, and similar compact cars) that sip fuel lightly, meaning fewer stops at the pump and more money left in your pocket.
For travelers planning to circle the island or take long drives, a fuel-efficient economy car is the smart choice to minimize fuel costs.


Save on Gas and Go Further
All Saga economy cars are two-wheel drive (2WD), which generally have better fuel economy than heavier 4x4 vehicles. While 2WD vehicles are not built for off-roading, they are perfectly suited for Iceland’s regular roads and highways. In fact, most of Iceland’s famous attractions are accessible via paved or well-maintained gravel roads that a 2WD can easily handle.
You’ll have plenty of power to climb hills and cruise highways, all while enjoying top-tier fuel savings. And if you’re an eco-conscious traveler, note that using less fuel also means a smaller carbon footprint for your trip – a win-win for your wallet and the planet. (For even greener travel, Saga also offers electric vehicles as an alternative.)
Practical Compact Cars
Saga’s economy cars offer the perfect balance of compact size, comfort, and fuel efficiency – ideal for exploring Reykjavik, the Golden Circle, and the Ring Road. These modern vehicles comfortably seat 4–5 passengers with space for 1–2 suitcases, making them a smart choice for couples and small families.
Easy to park and maneuver through city streets or scenic viewpoints, they’re especially convenient for first-time visitors driving in Iceland. Despite their size, they handle smoothly on highways and are equipped with features like Bluetooth, USB ports, and heated seats.
Best suited for paved roads, economy cars are the ultimate option for budget-friendly, stress-free travel in Iceland.


Key Advantages of Economy Cars:
- Low Rental Cost: Economy models have the lowest rental rates, helping you save money for tours, food, and fun during your stay.
- Great Fuel Efficiency: Enjoy superior mileage and spend less on gas, an important perk given Iceland’s high fuel prices.
- Easy to Drive & Park: Compact size makes these cars simple to handle on city streets and narrow roads, and parking in busy areas like downtown Reykjavik is a breeze.
- Ideal for Paved Routes: Economy cars are perfect for Iceland’s paved highways and popular tourist routes, from Reykjavik to the South Coast, as well as the entire Ring Road in summer.




