Please help with 9 days in Iceland
 

Fodorites, looking for your help as always.
We will have 8 full days in Iceland in year July (arrive on Saturday early in the morning, and leaving the following Sunday, in the afternoon).
We would like to do the Ring Road.
First, I would like you suggestions on whether to go with Self Drive package from a tour company or DIY.
We normally do DYI, and it seems I can do cheaper than a package, but wondering if piece of mind (24 hours road assistance, itinerary planned, etc) are worth extra money.

Second, here is what I think so far for DIY, and booked some accommodations accordingly. What are your thoughts? Unfortunately, it is hard to find accommodations already.
1. Day 1(early arrival) – not sure what to do. Blue Lagoon/Reykjavik? I would rather not go to Reykjavik right away. It would be nice to go somewhere to the south of Reykjavik, to relax, walk around, and convenient to start the Ring Road next day.
2. Day 2 – Vik
3. Day 3 – Hofn
4. Day 4 - Egilsstaðir town
5. Day 5 - Lake Mývatn (do not have a good hotel option here, everything is booked)
6. Skagafjörður area (need suggestions for accomodations here)
7. Þingvellir park area (Hotel IOH)
8. Golden Circle, Reykjavík
9. Blue lagoon, fly home

I have not done the ring road, but was planning to do it last summer. We ended up having to take a shorter trip and just stayed in Reykjavik for 4 days. I think you are cutting it very close. I believe my initial trip plans were for 14 days to do the ring road - well, 10 or so, plus 4 in Reykjavik. You can't zip around the ring road (and we did do some of it with a rental car) at 70 mph. It is slow, and there are a lot of places to pull off and explore. I would recommend scaling back and focusing on quality over quantity.

For the planned, but not taken trip, I made all reservations myself. It was extremely expensive - most hotels were $200 per night (some higher), and did not include breakfast. Restaurant prices were mid-range, in my opinion - you can get hot dogs cheap, but if you want a sit down meal it quickly becomes very easy to spend $30 per person. Activities are expensive. GAS is REALLY EXPENSIVE. Part of the reason that I scaled back our trip, aside from lack of time, was that I realized that for 4 people and 2 weeks we were quickly heading towards a $10,000 trip...(and our airfare was only about $500 per person).

Yes, I am having a sticker shock while looking at accommodation prices, but I wanted to go for a while, so will do what it takes.We went to Norway a couple of years ago, and seems like prices about the same, except car rental prices seem much higher in Iceland.
There are a lot people who had done the Ring Road in 8 days, and there are a lot of self drive packages are being sold for the Ring Road in 8 days, so I know this is doable.

Seems like from 3 to 5 hours drive a day, may not be that bad given long days. We like car trips. I am kind of set on doing the Ring Road.

I have done the ring road and it was one of the most amazing experiences in my life! Go DIY, the driving conditions in Iceland are really pleasant (you must be careful with weather, though, not to get stuck in river crossing) you can always stop and see everything you like any time you like.

Thank you, John! Is there anything I need to worry about in advance except lodging - any crossings, tour bookings, anything else?

We will be arriving to Reykjavik very early in the morning, and do not want to do much driving that day, but can do at least a bit.

Where would be a good stop for a first night, so we can start driving ti Vik next day. I do not feel like going to Reykjavik for an entire day.