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I'll be in Iceland and January and would like to go from Reykjavik to Budir. Will I need four-wheel drive, or are the roads paved often enough that an economy rental will suffice?
Thanks!

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The road is paved all the way.
Noone can tel you what the road and weather condition will be like, but, in Jan. there should not be any trouble changing car type immediately, according to conditions.
http://www.vegagerdin.is/english/road-conditions-and-weather/
B-)

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Isn't the question whether the roads will be plowed often enough?

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