Almost as Expensive to Rent and Buy Cars in Iceland Skip to content

Almost as Expensive to Rent and Buy Cars in Iceland

Renting a car for a week in Iceland over the summer can cost hundreds of thousands of krónur. The cheapest cars cost more than ISK 100,000 (USD 807, EUR 631) per week. Those who plan to rent a car for three weeks could buy a used car in good condition for approximately the same price.

The photo is not directly related to the story. By Páll Stefánsson.

For example, to rent a fairly new Opel Corsa for three weeks costs ISK 292,600 (USD 2,400, EUR 1,800) at one of the car rental locations. A car from 2001 of the same make, driven 215,000 kilometers, costs ISK 320,000 (USD 2,600, EUR 2,000) at a car dealership, Fréttabladid reports.

When prices between car rentals in Iceland and Denmark are compared, it turns out that rental cars are 50 percent to three times more expensive in Iceland.

Demand for rental cars in Iceland drops significantly in winter and so does the price.

“Mostly tourists rent cars. We are running with 300 to 400 cars over the winter but up to 1,000 in summer. It means that the car is left unused for ten months per year and then profits are brought in over a short period during the summer. That is the reason for this price,” explained Sigfús Bjarni Sigfússon, managing director of Hertz.

Hjálmar Pétursson, managing director of ALP-Avis, said the car rental companies survive because of the summer months. However, the price of rental cars in February might very well be the lowest in the world, he added.

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