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Spain and Southern France

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We are 2 couples aged 25-30 from India planning a trip across Spain and covering Southern France. We intend to land in Nice, stay there a couple of day and drive along parts of the beautiful countryside / Mediterranean coastline. We plan to spend 3 days in this region before moving on to Bilbao in Spain. Which would be the best point in France to drop off the rental car? Also, what is the best way to get from there to Bilbao.

We only have 3 days to spare in the Provence area, so we only plan to see Nice, Marseille and Arles. Any suggestions would be most welcome as the Renfe/Sncf websites were not able to provide me with any train suggestions. We are on a tight budget, hence looking for the cheapest mode of travel. Thanks in advance!

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