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Spain and southwestern France

We're planning a two-week trip this summer to Spain and southwestern France. We've already committed ourselves to arriving in Bilbao and departing from Madrid. Since there will be 3 or 4 of us, we're renting a car to economize and give ourselves flexibility.
Questions: considering the ground we'd like to cover, would 3 nights each in Barcelona and Madrid do them justice? And is having a car in Barcelona _ even though we would just garage it there _ so nightmarish that it's worth the hassle of returning the car upon arrival and renting a new one when we leave Barcelona en route to Madrid? Thanks.

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There is another option: turn in the car when you get to Barcelona, enjoy your time in this beautiful city, and take the high-speed AVE train to Madrid in 2.5 hours. If you buy you tickets in advance on Renfe to get the Web discount, the cost is a low as 47 euros each, instead of 117 euros. Web discounts are 60% off. You'll end up right in downtown Madrid with no worries about finding the rental retune and how to get from there to your hotel.