If you’re planning a trip to Iceland from the United States, you may be wondering what kind of rental car you’ll be driving. Are the cars similar to what you’re used to back home? Will it feel like driving a typical Ford F-150 or more like something unfamiliar? The truth is, American cars vs European cars, differ in more ways than size and style—and knowing what to expect can make your road trip smoother, safer, and more enjoyable.
At Hertz Iceland, we’ve been helping travelers explore this country for over 50 years. And as part of a brand trusted by Americans for more than a century, we understand what you’re used to, and how European rental cars compare. Let’s take a closer look at the key differences between American and European cars, and what it means for your rental experience in Iceland.
Size and Design: Bigger Isn’t Always Better
American vehicles are often large, with wide bodies and spacious interiors built for highways, suburban roads, and oversized parking spots. But here in Iceland, roads tend to be narrower, and villages more compact. That’s why European design leans toward smaller cars that are easier to handle on tight turns, gravel roads, and city streets.
Instead of full-size pickups, you’ll find a wide range of compact and mid-sized European vehicles, from hatchbacks to crossovers. These models are designed to be practical, fuel-efficient, and easy to park—even in downtown Reykjavík or a small Westfjords town.
Transmission: Automatics Are Available—But Limited
One of the biggest surprises for many American travelers is the availability of manual transmission cars. While most cars in the United States are automatic by default, many European models come with a manual gearbox.
That said, Hertz Iceland offers automatic transmission vehicles across most categories. Whether you’re looking for a small 2WD for the Golden Circle or a 4WD SUV for highland roads, you can book an automatic—but it’s important to reserve early, especially in summer, as demand is high.
Fuel Costs and Efficiency: Why It Pays to Think Smaller
Fuel prices in Iceland are significantly higher than in the U.S., and most rental cars run on petrol or diesel rather than electric. That’s where European counterparts have the edge. Many are engineered for better fuel economy, using smaller engines and lighter frames to reduce consumption.
For longer road trips, such as a full loop of the Ring Road, choosing a car with strong fuel efficiency can save you a considerable amount of money. It’s also better for the environment, and in Iceland’s delicate ecosystem, that matters.
Performance and Driving Experience: Power vs Control
American vehicles often prioritize raw power and smooth acceleration at higher speeds. While that works well on long, straight highways, it’s not always ideal for Iceland’s winding mountain passes and gravel backroads.
European vehicles are designed with a different philosophy—focused more on agility, control, and handling. You’ll notice this especially on narrow fjord roads or steep inclines. The speed limits in Iceland are also lower than in the U.S., and enforcement is strict, so having a car that performs well at moderate speeds is far more useful than one built to race.
Quality and Reliability: Built for the Terrain
While American drivers may be familiar with long-lasting brands like Chevrolet or Ford, European cars,including Dacia, Skoda, Volkswagen, and Peugeot—offer equally impressive build quality. These cars are designed for rugged terrain, icy winters, and high-mileage touring.
At Hertz Iceland, all our cars are under 2 years old with high quality, so you can expect a clean, modern, and reliable vehicle no matter which category you choose. Whether you’re driving paved roads along the South Coast or venturing toward gravel routes in the north, your rental car is up to the task.
Why Rent with Hertz Iceland?
As one of the world’s most trusted car rental brands, Hertz has been serving American travelers for over 100 years. Here in Iceland, we bring that same level of reliability and service—combined with deep local knowledge about road conditions, weather patterns, and travel logistics.
We understand what U.S. drivers expect. That’s why we offer a wide selection of automatic transmission vehicles, full insurance options, winter tires when needed, and convenient pickup at Keflavík International Airport (KEF). Whether you’re heading out for a short Golden Circle loop or a multi-day trip around Iceland, we’ve got the right vehicle for your plans.
Practical Tips Before You Hit the Road
Before you book, here are a few things to keep in mind:
- Reserve early if you need an automatic car—they’re in high demand.
- Choose the right car for your route. For highlands or rough terrain, go with a 4WD.
- Fuel is expensive—pick a car with good fuel efficiency.
- Obey speed limits and be cautious—roads can be unpredictable.
- Always check road.is and safetravel.is before driving, especially in winter.
Ready to Drive?
Exploring Iceland by car is one of the best ways to see the country on your own terms. And with the right vehicle—one that suits both European road conditions and your American driving habits—you’ll have a trip to remember.
