returning rental car

You certainly can return a car to a different city - but I believe most all rental firms charge more. All of the countries you mentioned, since they are in western Europe do not present any problems with access - it's when you cross into the former "eastern" Europe when rental companies start to get nervous. Usually they just limit rentals to lower value cars, not the deluxe models.
One point you might want to consider is the cost of the rental - since it's based on the country where you pick up the car, there definitely are differences in rates. I believe Germany is near the cheapest with Switzerland and Italy being the most expensive. Also some countries - Austria and Switzerland for sure, require you to purchase a special toll sticker if you plan on using the express highways. Back roads, city streets are free, but the super highways are not. My last tip - in Germany cars rented at the airport or train station have an additional tax - maybe 16%. If you can you might find a city rental office, take a taxi there when you arrive and save some $$$. Retuning the car to the airport when you leave does not cost extra. I've used AutoEurope with good luck. Have a good trip.

You should definitely plan on returning your rental car in the same country as you rented it, even if it means renting another car in the next country. Check the prices for picking up in one country and dropping in another, and you will most likely discover why - drop-off fees for that can be astronomical. Renting in one city and returning in another doesn't usually cause an additional fee.

Thank you all for your information. Last month we did go to AAA and get our international Driver's Licenses, so we are good to go in that regard. We will study your info and take your good advice. Anything else you can share will be studied and appreciated. A few years ago we drove in Ireland, Wales, and England (not London). I must admit we are still a little apprehensive about the first time driving in the continent of Europe, deciphering signs and routes. I bought a Michelin atlas and will have my via Michelin printouts. Any suggestions here? We are avoiding cities... ie... staying in Haarlem and training into Amsterdam. But much of our route takes us to places like Normandy D-Day beaches, Rhine River Valley etc.

I had never paid a one-way fee within France before, but this year all rentals I checked appeared to have such a fee, at least for automatics. I think I paid something like $50 or so. But it is apparently much less than dropping off in a different country. As to the various countries you mention, I would just add that Italy is often excluded from insurance, or maybe even permissible countries (I'm not sure about the latter).

We love using the Autoeurope.com web site, and playing with all of the options to determine our best price. They are a broker located in Maine, that handles all of the "Major's". We always pick up a rental in one location and it off in another. You will find that usually if you pick-up at an airport or train station, the price goes way up, but it does not seem to matter where you it off. But pick-up in one country and off in another, and watch the price escalate! Don't forget, if you plan on driving in Austria, that you need to stop in a gas station, before you cross the border, and buy one of their "Hiway Toll Stickers"; around $8.00EU. And by all means, bring your US driver's license, an International Drivers Permit(that you buy at your local AAA office), your GPS from home, a Michelin map of the countries where you will be traveling, and a compass. Actually, since you will be renting for more than 17-21 days, your best bet will be to "lease" a car. Leasing gets you all types of "free"extras"; free roadside service, no extra driver fees, total insurance w/no deductables!, no airport surcharges,etc. Again, check this out on Autoeurope or thru Renault or Peugot, etc: http://europeforvisitors.com/europe/articles/short_term_car_leasing.htm
http://www.reidsguides.com/t_au/t_au_leases.html

If you price the car returning in the same country and a different country, you can see that it's upward of a couple hundred dollars for the privilege of dropping in a different country. Sometimes that's still cheaper than backtracking. As far as visiting countries go, yes different companies will have restrictions on where their cars can go - Italy is marginal and former Eastern bloc countries often have some restrictions - based on negative experience the companies have had with those countries. Be clear about your itinerary, some companies will let one make of car (e.g. FIAT) travel to the countries you want but won't let another make (e.g. Mercedes) travel there. If you rent for more than 17 days, you should definitely consider leasing - especially if you pick up and/or drop off anywhere in France where there is no charge. I've leased when traveling as a group of five and rented when traveling as two. When I price, it seems rentals are better for the small basic cars but leasing is better when you need something bigger or better. Leasing includes CDW in the price, so can be a good deal. Speaking of CDW, I'm a fan of AmEx's CDW rental insurance option on some of their cards. With that option, you pay a one-time cost for a rental ($25-35 depending on where you live and the option) which covers the entire rental period (up to 40 days where I live, shorter in some states). Some states don't let AmEx offer it; if it's available to you, it's worth checking out. Last thought, you need an IDP (at least Italy but maybe some others too) for every driver. They aren't expensive and can be purchased from AAA before you leave (plan 10-20 minutes if you don't have spare passport photos, less if you bring your own photos).

Brad just wrote the best rental car explanation I've ever seen. Two elaborations: You can rent outside of Italy, drive all you want, and then turn the car back in outside of Italy without getting into the cdw whammy. Do either end transaction inside of Italy and you're screwed. In the old Eastern Bloc, tell the agency what your plans are if you're renting in the west. Not only will you need the cheap car, but there's some kind of add-on fee - - I've never asked what it's for, but it's only twenty bucks or so for the whole period.

Cynthia: It appears you're thinking right about staying outside the big cities. If you don't spend $20 a day parking in a garage, on street parking will also be very expensive. You'll often see a meter on every street block where you have to purchase time stamps to leave on your dashboard. Stay in hotels with free parking. Don't be apprehensive about driving if you're a good driver. Just stay in the right lanes when you're on the autobahn and you'll be okay. We find driving in Europe the best and most efficient way to see more tourism sights outside the big cities. We cherish our memories driving off the beaten path in U.K., France, Germany, Austria and Italy. When in Italy last year, we found staying in a central location to do day trips from preferable. $9.51 per U.S. gallon of gas is a game changer. We still drove 750 miles around Tuscany in 5 days, however. The mandatory CDW in Italy is not that big of a deal. Their CDW rates appear to be capped, and are much less than many parts of the world, including the U.S. And we didn't face any drop off fees leaving our car in another Italian city. I have looked into leasing, and didn't see any bargains.
If you're going to get a Hertz car, join their frequent renter program for big discounts. We used AutoEurope.com, and were very satisfied.

Driving in mainland Europe is pretty easy. The signage is pretty intuitive. The main A&E highways are very slick and will get you there fast. Other roads - even though they may have a number on a map - may not often be referred to by number on signs - only by what cities and towns are along the way. Plan on averaging no more than 40mph on those secondary roads - more like 30mph if it's mountainous. Observe speed limits. They have cameras. Ignore the fact that it will make you feel like the slowest person on the road. Stay in the slow lane except to pass. Leasing for 3-week rentals is only cheaper if you are comparing it with a mid-size, highly ensured vehicle. If you rent small and stick with the standard coverage, rental is cheaper. No, you don't want to drop in a different country. The fees for that I've seen are anywhere from $300-$700. Dropping in a different city within the same country only incurs a small fee. All of the countries you mention are wide open for rental car travel without issue (window sticker vignette required in Switz & Austria in lieu of tolls). Only becomes an issue in the slightly more "wild" countries much farther East. If possible, organize your itinerary to use trains between consecutive large city visits and only rent the car for a portion of your trip that is mostly town/village/rural. The car is of no use to you in any larger city. In this manner, rental periods can be kept shorter. As easy, useful and convenient as driving can be, the day I get to return the car to the rental agency and continue on without it using public transport is always one of my favorite days of any trip. It is the ultimate stress reliever.

Since Italy is on your itinerary, you should get a good GPS to take with you. The top brands are TomTom and Garmin, neither are perfect but both are a step up from other brands. I had driven many times in Europe, including driving on the wrong side, and never had any problem until I drove in Italy. The signage in Italy makes navigation with a map nearly impossible, and hugely inconvenient, both in towns and on the autostradas. In town, road signs are rare so it can be hard to know which road you are on or whether the next road is your turn. Our first trip was with only a Michelin map and I found myself asking for directions often (fortunately I crammed on Italian before my trip). One example stands out in my memory. In Verona, as part of our asked for directions, I was told to cross Ponte Campione... I rounded the corner, looked down the river and saw five bridges - none with a name or sign on them. On the highway, there is never a sign that says "A5 West"; instead you will see a sign, AT THE EXIT, that lists several small towns you have never heard of. Unless you have memorized the name of every town along your route, you have no time to consult a map. Each wrong turn on the autostrada will result in 15 or 20 minutes lost time because each exit has tolls, so they are few and far between. GPS is the way to go, preferably with a unit you already know how to use. Have a good map as well so you aren't relying blindly on the GPS. They can make errors that need to be caught.