For the ring road in May you need no 4x4. Rent as small a car as possible because rental cars in Iceland are expensive. Hertz , Avis, Europacar (
www.holdur.is), a german company Hasso (
www.hasso.is) all have relativly new cars that are relieable. If you fly Icelandair, they own the Herz agency in Iceland and they might give you a better deal if you book your rental car +flight. Book your car before you come to avoid sales tax and do not do business with rentals that rent out old cars although cheep.
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