Hi Pam,

I went to google and found this website:

http://iceland.carrentals.is/>>

there are several others

We used Rental Car Group in Iceland (Cartrawler) and had no problems. Price was good, and we were able to do the opposite of you - hire at the airport and return in town - without issue. Don't search the major US carriers, better deals can be found by searching via Icelandic companies.

DON'T RENT A CARS FROM AVIS, BUDGET ICELAND...!! It's one company - ALP - they withdraw mileage in cars. You can rent scrap car with small mileage !!!!!!!!!!!!!!!
*crooks* ! be careful

Pamo2, I am also planning a trip to Iceland soon. I've been in touch via email with route1 (mentioned above by Afarhan) and Sixt. They are both very responsive and co-operating. Sixt's prices are lower (check www.sixt.com).

Sixt has mixed reviews on TA but Route1 has amazing reviews on tripadvisor and my personal experience so far confirms that Route1 will work for me. They are slightly costlier than Sixt, fyi. As long as I have no headaches renting/returning the cars...a slightly higher price is ok for me.

TP

Doh, just realized this thread is from 2012 !!

yes, tiger, like many threads it was revived by someone advertising his/her business. one way of telling is that it's his only post.

I've pressed the yellow triangle.

Yes, be careful of US car rental companies. They could scrounge you for your money. Local Icelandic companies are better. And here's a tip. Most car rental prices drop come 1 Sept.

Check out Icelands peer to peer car rental. In some cases it has the best prices.
https://carrenters.is