We're not for a second suggesting that you drive in Prague itself, but there's a whole world of fascinating sights outside the city and the best way to see them - and the beautiful countryside in between - is to drive. Royal Rent have a good range of cars, from tiny wee Fiat Puntos to minivans, or even chauffeur-driven Mercs (yes, you rent the chauffeur too)! Most of the cars have good specs also, and some have multi-language GPS for the ultimate in peace of mind. The prices are pretty good and you can reserve online too.
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