Out of all the popular cities in Iceland, Reykjavik is the cheapest city to hire a car in at just £29/day. Renting a car in Reykjavik is 86% cheaper than renting one in Isafjordur where the per day rate is around £194. Other fairly inexpensive cities in Iceland to get a car hire in are: Akureyri (£57/day), Egilsstaðir (£71/day), and Isafjordur (£194/day). While these cities typically have cheaper prices than the rest of the country, travellers looking to hire a car in Reykjavik should expect to spend around £29/day on their transportation. The most popular city to rent a car in Iceland is Reykjavik.