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Multi country travel with rental car

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We are planning a trip to Europe and plan to hire a car. Right now the thought was to hire in Munich, drive to Czech republic (Prague mainly), then Austria and northern Italy. We would return the car to Munich.
Has anyone encountered problems, or "clear sailing" with this type of plan? Would we better off going Munich to Prague on a train and back and getting the car then?
If this is not a good plan - what are the options. - thanks, Bev

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