A silver hatchback car parked by a scenic roadside with water, mountains, and a cloudy sky in the background.
6 min read
Aron Freyr

Automatic Toyota Yaris (2023–2025) Review: Is It a Good Rental Car for Iceland?

If you're comparing rental cars for your Iceland trip, the Toyota Yaris keeps coming up as one of the cheapest automatics out there. Here's what it's actually like to drive around the country, and where it comes up short.

The Toyota Yaris shows up in almost every Iceland rental search. It's small, it's a hybrid, and it's usually one of the cheapest automatics you can book. But small and cheap doesn't always mean it's right for your trip. Below, I'll walk through what the 2023 to 2025 Yaris is really like on Icelandic roads, from Reykjavík traffic to the Ring Road, so you can figure out if it fits your plans.

Quick verdict

Here's the short version, for anyone who just wants the answer.

The Toyota Yaris is a good fit for one or two travellers sticking to paved roads: Reykjavík, the Golden Circle, the South Coast, and a summer Ring Road trip. It's not the car for four adults with full suitcases, deep snow, or anything involving F-roads.

  • Best for: solo travellers, couples, budget-focused visitors, summer trips
  • Okay for: three adults travelling light, small families with modest luggage, well-maintained gravel roads
  • Not a good fit for: four adults with holiday luggage, tall rear passengers, rough roads, deep snow, or the Highlands
  • Main strengths: great fuel economy, automatic transmission, easy to park, solid safety features, no need to plug it in
  • Main weaknesses: small boot, tight back seat, low ground clearance, front-wheel drive only, and a light body that gets pushed around more by wind than heavier cars
  • Overall Iceland rental rating: 4/5

If I were you, I'd treat the Yaris as the go-to choice for a paved-road Iceland trip, and look at something else the moment gravel tracks in the Highlands enter the picture.

Car overview

The Yaris sold in Europe from 2023 through 2025 is the fourth-generation model. It's a small five-door hatchback, not an SUV or crossover. It falls into what's called the B-segment, basically the supermini class: a step up from a city car, a step down from something like a Corolla.

  • Body style: 5-door hatchback
  • Seats: 5
  • Drive: front-wheel drive (2WD)
  • Transmission: automatic hybrid transaxle (Toyota calls it e-CVT)
  • Engine: 1.5-litre three-cylinder petrol, working alongside an electric motor and a lithium-ion battery
  • Fuel type: petrol-electric self-charging hybrid, no plug needed
  • Doors: 5
  • Fuel tank: around 40 litres
  • Ground clearance: roughly 135 mm

There's one change worth knowing about. The 2023 Yaris used the standard hybrid setup, usually called Hybrid 115 or Hybrid 116, putting out around 116 horsepower. Starting with the 2024 model year, Toyota also rolled out a Hybrid 130 version on certain trims, with a stronger electric motor and quicker acceleration. Both versions were still around in 2025.

For a rental, though, this matters less than you'd think. Bookings almost always show up as "Toyota Yaris or similar," so you won't actually know which engine, or even which car, you'll drive off with until you're standing at the counter.

Passenger space and comfort

Five seats on paper doesn't mean five comfortable seats in real life, especially over a week of driving around Iceland. Here's how it actually breaks down.

Front seats

Two adults will be perfectly comfortable up front. You sit a bit lower than you would in a crossover like the Yaris Cross, but you can see out fine, and the controls are simple enough that you won't need to think twice about them.

Rear seats

This is where things get tighter. Two average-height adults fit okay in the back, but there's noticeably less legroom than in a bigger hatchback. Three people across the back seat works for a short drive, not for a full day on the Ring Road.

  • 2 adults: comfortable
  • 3 adults: fine for shorter trips
  • 4 adults: doable, but you'll feel it in both legroom and luggage space
  • 5 adults: okay for a quick errand, not for a road trip

My advice? Skip the Yaris if you're travelling as four adults with real luggage. It's not that the car can't seat you, it's that nobody's going to enjoy day six of the trip.

Luggage capacity

Boot space is one of the biggest things that decides whether this car works for your trip, so let's spell it out clearly instead of just saying "small."

The Yaris officially holds around 286 litres with the back seats up and bags packed below the parcel shelf. Fold the seats down and that jumps to close to 950 litres.

In practical terms:

  • Comfortable: two cabin-sized suitcases plus a few soft bags
  • Usually fine: one large suitcase and one smaller one, packed carefully
  • Tight but possible: two medium suitcases
  • Not going to happen: two large suitcases plus two cabin bags for four people

One nice touch: bags under the parcel shelf stay hidden from outside the car. That's useful when you're stopping at attractions and don't want everyone seeing what's in your boot, though you should still never leave valuables in plain sight in a parked car anywhere in Iceland.

If you're a couple with normal holiday luggage, the Yaris's boot will do the job. If you're a group of four with full-size suitcases, size up before you book.

A silver hatchback car with its trunk open, revealing a red bag and dark roll inside, parked on a gravel road under a cloudy sky.

Driving experience in Iceland

How the Yaris feels behind the wheel changes a lot depending on where you're driving, so let's go through it road type by road type.

Reykjavík and towns

This is where the Yaris really shines. It's small enough to park easily, you can see out well on tight streets, and the hybrid system works best in the stop-and-go driving you get in town. The automatic transmission is one less thing to think about too, especially if you're not used to driving in Iceland.

Golden Circle and South Coast

Both routes run on well-maintained, paved roads, so you don't need anything more than a normal car. In decent weather, the Yaris handles this kind of driving without any fuss: comfortable enough, cheap to fill up, and easy to park at every stop.

Ring Road

In summer, the Yaris is a solid choice for the Ring Road if there are one or two of you. Iceland's normal speed limit on paved rural roads is 90 km/h, so the car has plenty of power for that. The downsides show up on the longer days: more road noise than you'd get in a bigger car, less stability in strong wind, and a boot that fills up fast.

Gravel roads

The Yaris can handle ordinary, well-kept gravel roads where regular cars are allowed, but it wasn't built for it. Slow down before the pavement turns to gravel, since the grip changes fast and this is a light car. With only 135 mm of ground clearance and tyres made for pavement, I'd call gravel driving "doable if you're careful," not "no problem at all."

Wind

Sitting low to the ground helps in crosswinds compared to a tall SUV or camper, but the Yaris is also light, so strong gusts can still push it around. In genuinely bad wind, slow down, keep both hands on the wheel, and pay attention to the doors. A sudden gust can catch a door and damage it before you even realize what's happening.

4x4 and F-road suitability

This one's short, because the answer doesn't need much explaining.

The Toyota Yaris is front-wheel drive only. It's not a 4x4, and it's not made for Iceland's F-roads or the Highlands.

  • F-road rating: not suitable, and usually not allowed under rental terms
  • River crossings: don't attempt this in a Yaris, or in most rental cars for that matter
  • Highlands routes: you need an actual 4x4 here, not a hatchback with good intentions

If your trip includes the Highlands or any road marked "F" on the map, this isn't the car for you. Book a real 4x4 instead, and save yourself a fine or a very bad afternoon stuck somewhere with no phone signal.

Fuel economy and running costs

Fuel efficiency is genuinely one of the Yaris's biggest strengths, so it's worth showing what that looks like in real Icelandic driving instead of just quoting the factory number.

Toyota's official combined figure sits around 4.0 to 6 litres per 100 km, but that comes from a lab test, not a road trip through Icelandic wind.

A more realistic range for actual driving in Iceland:

  • 4.0–4.5 L/100 km: easy summer driving, mostly in town
  • 4.5–5.5 L/100 km: typical mixed touring around the country
  • 5.5–6.5+ L/100 km: cold weather, strong headwinds, a full boot, or a lot of high-speed driving

With a roughly 40-litre tank, that works out to somewhere around 650 to 900 kilometres before you need to refuel, depending on conditions.

The best part is you don't need to plan around charging stations at all. It's a self-charging hybrid, which just means the battery tops itself up through braking and the petrol engine as you drive. You fill it with petrol like any normal car and never plug it in.

Features that matter in Iceland

Not every Yaris has the same equipment, since this changes by model year and trim. Still, a few features are worth asking about because of how useful they are on Icelandic roads.

  • Heated seats: genuinely worth having given how often you'll be dealing with cold mornings, though it depends on the trim
  • Apple CarPlay and Android Auto: common on 2024 and 2025 cars, handy if you're navigating from your phone
  • Reversing camera and parking sensors: useful in tight Reykjavík parking spots and busy attraction car parks
  • Cruise control: great for long stretches of the Ring Road, though I wouldn't rely on it over ice, snow, or loose gravel
  • USB charging ports: worth checking the port type ahead of time so you bring the right cable

My advice here is simple: don't assume every feature you read about will be in the actual car you're handed. If something matters to your trip, just ask the rental desk directly.

Safety and Iceland-specific considerations

Iceland's roads come with a few challenges you won't run into as often elsewhere, so it's worth covering both what the car offers and what you should watch for yourself.

Built-in safety technology

The Yaris generation sold from 2023 comes with Toyota Safety Sense, which usually includes automatic emergency braking, lane departure warnings, road sign recognition, and adaptive cruise control, depending on the trim and model year. It also carries a strong five-star safety rating from independent European crash testing.

Conditions to watch for

Driver-assistance systems help, but they don't replace paying attention on Icelandic roads. A few things worth being extra careful about:

  • Wind: hold the door firmly when opening it, and slow down in strong gusts
  • Gravel transitions: slow down before the pavement ends, since grip drops fast
  • Single-lane bridges: slow down and check for oncoming traffic before you cross
  • Sheep on the road: common in rural areas, especially during summer grazing season
  • Sudden weather changes: conditions in Iceland can shift within a single drive, so check the road and weather updates before heading out each day

Who should rent the Toyota Yaris?

Different trips call for different cars. The table below shows where the Yaris makes sense and where it doesn't.

Trip typeSuitability
Reykjavík onlyExcellent
Reykjavík + Golden CircleExcellent
South Coast (summer)Excellent
Ring Road (summer, 1–2 people)Excellent
Ring Road (winter)Fair, an AWD car gives more margin
Maintained gravel roadsFair, drive slowly
4 adults + full luggageWeak
Highlands / F-roadsNot suitable

If I were planning a summer trip with one other person, this table alone would be enough for me to book the Yaris and move on. If your plans fall on any row marked weak or unsuitable, it's worth considering a bigger car instead.

Pros and cons

Putting it all together, here's the short version of what works and what doesn't.

Pros

  • Excellent fuel economy for a petrol car
  • No charging cables or planning required
  • Automatic transmission, easy for visitors unfamiliar with the roads
  • Small size makes Reykjavík parking simple
  • Strong safety features for the class
  • Comfortable front seats and plenty of power for Iceland's speed limits

Cons

  • Only around 286 liters of boot space
  • Back seat gets cramped for taller adults on long days
  • Front-wheel drive only, so no F-roads or Highlands
  • Just 135 mm of ground clearance
  • Light body feels wind more than heavier cars do
  • Not the right pick for four adults with full luggage

Alternatives

If the Yaris isn't quite right for your trip, here are a few other options available from Go Car Rental worth considering.

  • Smaller and cheaper: the Hyundai i10 is the natural step down. It's also automatic, front-wheel drive, and seats five, making it a good choice for Reykjavík, the Golden Circle, and lighter trips with minimal luggage.
  • Similar class: the Renault Clio is another small, front-wheel-drive option with space for five. The main difference is that it's manual, so it's worth considering if you don't need an automatic.
  • More space: the Kia Ceed gives you extra luggage capacity while remaining an easy-to-drive front-wheel-drive car. For even more room, the Kia Ceed Wagon or Skoda Octavia Wagon are better suited to longer Ring Road trips and travelers carrying several bags.
  • SUV without needing AWD: the Renault Captur gives you the higher seating position and extra practicality of a crossover while remaining front-wheel drive and automatic.
  • Winter or Highland trips: step up to an AWD or 4WD model such as the Dacia Duster, Kia Sportage, Hyundai Tucson, Subaru XV, or Suzuki Vitara. The Toyota RAV4 is another larger automatic AWD option if you want more passenger and luggage space.

The Yaris itself is front-wheel drive and isn't permitted on Iceland's F-roads, so if the Highlands are part of your itinerary, choosing an appropriate 4x4 is essential.

Final recommendation

Go with the Toyota Yaris if you want a cheap-to-run, easy-to-drive automatic for Reykjavík, the Golden Circle, the South Coast, or a summer Ring Road trip with one or two people. Its hybrid system keeps fuel costs low, and you'll never have to think about charging it.

Skip it if you're traveling with four adults and real luggage, expect real snow, need extra ground clearance, or plan on visiting the Highlands. This car is front-wheel drive, and it has no business on F-roads or river crossings.

For most people doing a standard paved-road Iceland trip, I'd say book the Yaris and put the money you save toward experiences instead of a bigger car you won't actually need.


About the author

Aron Freyr

Born and raised in Iceland, Aron Freyr has spent all 28 years of his life exploring the country and getting to know its landscapes, regions, and ever changing conditions. From long summer road trips to winter journeys through remote areas, he has traveled across Iceland more times than he can count. As part of the Go Car Rental Iceland team, Aron turns this firsthand experience into trustworthy, practical guidance that helps visitors navigate Iceland with confidence. His deep local insight makes him one of the most reliable voices on Icelandic travel today. He claims this expertise also includes knowing exactly which gas stations make the best hot dogs.