Automatic vs Manual Rental Cars in Iceland: Which Should You Choose?

Planning a road trip in Iceland? Renting a car is the best way to explore everything from waterfalls to the Ring Road, but first, you’ll need to decide: automatic or manual?

While manual cars are more common and cheaper in Iceland, automatic vehicles are easier to drive, especially for visitors unfamiliar with local conditions like gravel roads, strong winds, and changing weather.

In this guide, we’ll compare automatic vs manual car rental in Iceland, including costs, availability, and which option is best for your trip.

Are Rental Cars in Iceland Automatic or Manual?

In Iceland, both manual and automatic cars are readily available, but manual vehicles tend to be more common overall. This means you’ll often find a wider selection of manual options, and they’re typically priced lower than automatics.

At the same time, automatic car rental in Iceland is easy to find, especially with major rental providers and for popular vehicle types. However, because many international travelers, particularly from the US, prefer automatics, they tend to be in higher demand and can book out faster during peak seasons.

If you’re considering a manual car rental in Iceland, you’ll benefit from greater availability and lower costs. If you prefer an automatic, it’s still a convenient option, just worth reserving in advance to ensure availability.

Automatic vs Manual Rental Cars in Iceland (Quick Comparison)

Choosing between an automatic and manual car rental in Iceland often comes down to comfort, cost, and driving experience.

Both options are perfectly viable for driving in Iceland, but your choice will depend on how comfortable you are driving a manual car and the type of trip you’re planning.

Why Choose an Automatic Car Rental in Iceland

To help you decide the right type of rental car for your visit to Iceland, we’ve pulled together all the benefits of an automatic vehicle. 

Easier for Long Drives (Ring Road)

Driving Iceland’s Ring Road involves long hours behind the wheel, often through changing landscapes and conditions. An automatic car makes the experience much more relaxed, allowing you to focus on the scenery rather than shifting gears, especially on longer drives.

Less Stress in Challenging Conditions

Iceland’s roads can be unpredictable, with strong winds, gravel surfaces, and narrow stretches in more remote areas. An automatic car reduces the mental load of driving, which can be particularly helpful when dealing with:

• sudden wind gusts
• loose gravel roads
• single-lane bridges and tight turns

Ideal for First-Time Visitors

If it’s your first time driving in Iceland, or your first time driving outside your home country, an automatic car offers a more familiar and confidence-building experience. This is especially true for travelers who are not used to manual transmission.

Who Should Choose an Automatic Car?

An automatic car rental in Iceland is typically the best option if you:

• are visiting from the US or don’t regularly drive manual
• want a more relaxed, stress-free road trip
• are planning long drives around the Ring Road
• are traveling in winter or variable weather conditions
• will be sharing driving responsibilities with others

For most travelers, the added convenience and ease of driving make automatics a popular choice, especially when exploring Iceland for the first time.

Why Choose a Manual Car Rental in Iceland

For some visitors, a manual car will be the right option. If you think you’d prefer a manual, this section will help you work out if that’s a real possibility.

Lower Cost

One of the main advantages of choosing a manual car rental in Iceland is the price. Manual vehicles are typically more affordable than automatics, making them a good option for travelers looking to keep costs down—especially on longer trips.

More Availability

Manual cars make up a larger portion of rental fleets in Iceland, so you’ll generally find more options to choose from. This can be particularly helpful during peak travel seasons, when automatic vehicles tend to book out faster.

Good for Experienced Drivers

If you’re comfortable driving a manual car, there’s no major drawback to choosing one in Iceland. Many roads are well-maintained, and experienced drivers may find manual vehicles just as practical for most routes, especially in summer conditions.

Who Should Choose a Manual Car?

A manual car rental in Iceland can be a great choice if you:

• are confident and experienced driving manual
• want to save money on your rental
• are traveling during the summer months with milder conditions
• plan to stick mostly to main roads like the Ring Road
• don’t mind a more hands-on driving experience

For the right traveler, manual cars offer a cost-effective and widely available option without sacrificing the ability to explore Iceland comfortably.

Driving Conditions in Iceland Impacting Automatic or Manual Rental Choices

Driving in Iceland is very different from driving in many other countries, and road conditions can change quickly depending on where and when you travel. This is why choosing between an automatic and manual car rental in Iceland isn’t just about preference—it can directly impact your comfort and confidence on the road.

Weather & Wind

Iceland is known for its unpredictable weather. Strong winds, sudden rain, and rapidly changing conditions are common, even in summer. In these situations, having an automatic car can make driving feel more manageable, as you can focus fully on steering and road awareness rather than gear changes.

Gravel Roads & F-Roads

While the main routes like the Ring Road are paved, many secondary roads are gravel, and highland F-roads can be rough and uneven. These surfaces require extra attention and control, particularly when navigating loose gravel or uneven terrain. Drivers comfortable with manual transmission can handle these conditions, but an automatic often reduces the overall effort required.

Winter vs Summer Driving

Driving conditions vary significantly by season. In summer, roads are generally easier to navigate, with longer daylight hours and milder weather. In winter, however, snow, ice, and limited daylight make driving more challenging. During these months, many travelers prefer automatic cars for their simplicity, especially when combined with a suitable vehicle like a 4x4. For more on this, find out if you need a 4x4 in Iceland.

Understanding these conditions can help you choose the right type of car for your trip, ensuring a safer and more enjoyable driving experience in Iceland.

Cost Difference: Automatic vs Manual Car Rental in Iceland

One of the biggest differences between automatic and manual car rental in Iceland is the price. In general, automatic cars tend to be more expensive than comparable manual vehicles. This is largely due to higher demand and a more limited supply of automatic cars.

Seasonality also plays a major role. During peak travel months, especially summer, automatic cars are in even higher demand, which can drive prices up further and reduce availability. Manual cars, on the other hand, are usually easier to find and maintain, with more stable pricing.

Because of this, booking early is important, particularly if you prefer an automatic car rental in Iceland. Reserving in advance increases your options and helps lock in better rates before availability becomes limited.

Choosing between an automatic and manual car rental in Iceland comes down to comfort, experience, and budget. Automatic cars offer a simpler, more relaxed driving experience, especially helpful for long distances and challenging conditions, while manual cars provide a more affordable and widely available option for confident drivers.

For most travelers, particularly those unfamiliar with manual transmission or visiting Iceland for the first time, an automatic car is often the easiest and most convenient choice. However, if you’re comfortable driving a manual and looking to save money, it can be a perfectly practical option.

Whichever you choose, booking early and selecting the right vehicle for your travel plans will help ensure a smooth and enjoyable road trip in Iceland.

FAQs

Is it better to rent an automatic car in Iceland?

For many travelers, yes. Automatic cars are easier to drive and reduce stress, especially in Iceland’s changing weather and road conditions. They’re a popular choice for first-time visitors.

Is manual cheaper than automatic in Iceland?

Yes, manual cars are typically more affordable. They often cost 20–40% less than automatic vehicles and are more widely available.

Can Americans rent manual cars in Iceland?

Yes, Americans can rent manual cars in Iceland as long as they have a valid driver’s license. However, since manual cars are less common in the US, many travelers prefer automatics for convenience.

Is driving in Iceland difficult?

Driving in Iceland is generally straightforward on main roads, but conditions can vary due to weather, wind, and gravel surfaces. Choosing the right car and staying aware of road conditions make a big difference.

Are automatic cars harder to find in Iceland?

Automatic cars are widely available, but they are in higher demand—especially during peak travel seasons. It’s best to book early to ensure availability and better pricing.

Can I drive the Ring Road in a manual car?

Yes, the Ring Road is fully paved and suitable for both manual and automatic cars. As long as you’re comfortable driving manual, it’s a perfectly viable option.