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Car rental / private tourguide Iceland

I'm going to Iceland for the month of July to photograph and have realized that car rental is quite expensive there. Any tips on cheap cars to rent? Was thinking it might be a better deal for me to hire a local person with a 4x4 to drive me around on select days, which would also give me an assistant. Any tips on local "craigslist" type of posting boards where I might look for a local driver?

What are some must see things in iceland when it comes to dramatic nature?

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