Going to Madrid shortly and I would like to rent a car. Is there anywhere I can rent a car other
than the Airport? I'm going to be at a hotel downtown so I would like to rent a car in that area.
thanks
rick

There is an Avis office on the Gran Via. Be sure to specify where you want to pick the car up when you make your reservation. Most of the time, there is no charge for drop off and pick up in different locations, so you can get the car in central Madrid on your way out of town and then return it to the airport as you're leaving Spain (or vice versa--we picked up our car last time at Barajas and returned it on the Gran Via, then spent a couple of car-free days in Madrid before taking the Metro back to the airport to leave Spain).

You can stop at the Avis office in the airport when you arrive and pick up a map there (ask the person at the desk to mark it for you), so that you'll know where in downtown Madrid you need to go to get your car.

I've booked a car to rent in October through Autoeurope and I asked to pick it up downtown rather than at the airport, as I too, am staying downtown for 2 days before taking to the highways. I'm scheduled to pick up a car at Avis which is near the rail station...but I don't have the exact address with me now. Anyhow, there is another option. Just ask for it.

I've used Avis @ Grand Via a couple of times - always with great results. Pop on the web and find out what the current costs are; also Aerocity handles car rentals and many of us know the Aerocity service is extremely reliable and cost-efficient. Try doing a check in the search area under car or auto rentals. Hopefully you know how to drive a stick - automatics are rare and costly.

We will be dropping off a car in Madrid. I see lots of advice for the Avis drop off on Gran Via. How about for National Rent a Car? Is it also on Gran Via? What do you advise if our hotel is on C/Principe - go to hotel and then
drop off at Gran Via, or vice-versa?

Well, we're back from out trip to Spain and Portugal and want to thank the message board for all the useful hints about lodging and transportation. We used a rental car for ~2 weeks during the trip and I wanted to convey the following:
1) When you arrive in your destination city, go to a central area near your hotel like a main square or monument. One person stays in the car while the other goes to the hotel to get directions to the nearest parking. The hotel people know the latest and best path to parking which avoid one-ways, construction, etc.
2) Be prepared to pay $10-$15/day for parking in places like Granada, Cordoba, Seville. It's expensive but buys a lot of peace of mind for security of the vehicle from theft and damage.
3) If you rent from National, be forewarned that Atesa insists on CDW insurance even if your credit card covers that. Avis is does not have that policy, but if you do an early drop-off (2 days early), you get charged a new, higher rate which cannot be predicted until the bill is processed at the end point! I had to return to the US and speak to Avis to get a refund, so another good reason to use a US car rental company is that such things can be resolved, post-trip. Disputing costs at the airport when your flight is 2 hours away can be very stressful!
4) Definitely dispose of the car early if your trip ends in a city like Madrid. We stowed 2 heavy bags at left-luggage, dropped off the car, and took the newly extended Metro line into the city. At the Colombia station, displays shows the boarding gates of departing flights and the new cars have luggage racks. Barajas airport has Metro info which calculates the "least number" of changes route for you.
5) The Spain highway system is great for getting from A to B, but I most enjoyed the scenic mountain roads around Guadalupe where there was no traffic and we went thru the little towns instead of bypassing them. AAA puts out an adequate map for Spain, but you need the local maps from Tourism to navigate out of town. Watch out for the hefty tolls on the Portugal highways ->$10 to go from Lisbon to Badajoz, Spain.