If you are looking for a cheap but spacious rental car in Iceland, then the VW Polo is perfect for you. Renting an automatic car makes driving much easier when are unsure where you are going. A small car is ideal for getting around the city and the Polo is great for travelling around the whole country via the Golden Circle ring road. Despite being a moderately sized car, there is enough space in the boot for 3 bags. If you are planning to visit the major attractions in Iceland and plan on staying mainly on the Golden Circle, then the VW Polo should be your automatic choice.
Most of the roads in Iceland are of a good standard so you shouldn’t have any problem driving around in a small car. You will only find more treacherous roads and gravel roads if you head further off the golden circle and into the highlands. If you plan on being a little more adventurous and want to head out to remote locations in the Westfjords, then you should consider renting a 4x4 instead of a Polo. But otherwise, the VW Polo automatic is the perfect car for cruising around Iceland and taking in the scenery.