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Last June we flew into Oakland, rented a car, and then drove to Modesto. I think there were several motels, hotels there. We spent the night in Modesto, got up early and drove to Yosemite National Park. Merced would also work as a place to stay. We also stayed in Fresno when we visited Sequoia National Park and Kings Canyon National Park. We also drove around in the California central valley and found several fruit and vegetable stands/back of pickups where we could buy fresh strawberries, cherries, blackberries, which we could eat while traveling around. I think you can find several lodging spots that cost between $70 to $100. I would think you need to book pretty soon though for a July 4th. Yosemite is about 2 ½ hours from Modesto and maybe 1 ¾ from Merced.
Have a good time.
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