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London to Berlin advice and recommendations

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INTRO
I am planning to go with 1 other person from London to Berlin by car. I would like some advice please! I must apologize because I am not really sure what to do or where to go (holiday novice lol)

Some information about myself: I am a student and work part-time. I have been allocated 20 holiday days before 31 August so need to think about when to request days off before the others do.

I was thinking to go to Europe for about 14 days of those days.I am saving for my own car. I am 22 years old and have 2 years no claims accumulated on my parents car (as main driver commuting 36.5 miles each way to University 4 days per week). Insurance via online comparison sites suggest that insurance for a Skoda Octavia 1.9L would be £765 for example.

CURRENT RESEARCH
So far my research have suggested to stay at the Accor Group hotels (Ibis and the like) which I have found prices between £36-£50 per night which is not bad in comparison to other hotels I have looked at.

Would it be wise to pre-book or turn up on the day?

I have looked into acquiring one of those pre-paid credit cards linked to local currency (e.g. FairFX).

To visit attractions in the main city centre, I think it would be best to go from the suburbs hotel to the centre by public transportation. This does not seem to unreasonable and we are willing to do that (instead of suffering parking problems in the city).

Hope you don't mind confirming the above and offer some suggestions for the ones below?

CAR TYPE
Would a supermini (Fiesta, 207) be capable of tackling the European roads and motorways? Or perhaps something bigger such as a small family car (Octavia, Cee'd) would be more appropriate?

The reason I ask is because I could get a brand new car for £7,865 for the one I want (Dacia Sandero - new to the UK from March 2013) I thought I would look at the used car market as advised and for the same type of money I could go up one size and was wondering if that would be more comfortable.

I do plan to keep the car afterwards so no need to shift it afterwards so I would prefer for it to be reliable and to last for the long-term i.e. when we are back.

ATTRACTIONS
I am not really the holiday type. Where do I go, where can I find some information? Someone recommended me a DK Guide to *country name* which I will buy to get some inspiration but other then set destinations I am not sure where to go?

Here are the things we must see on the way:
* Bruges (although not sure what to do there? Museums?)
* Hanover - Zoo? Zoo is apparently good.
* Wolfsburg - VW Factory Tour
* Berlin - historic sites (Wall, memorial, concentration camp)
* Guben - Plastination
* Bavaria - Castles

On the way back I was thinking of routing through Bavaria (go south) to see the Castles (and drive on the "Romantic Road") as opposed to go the same way back we came.

Thank you guys for any help :)

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