In situations such as this I like to point out that the cost to repair the transmission is less than the sales tax on a new car. Assuming you buy something moderately lame such as an Acura TSX for $30K, the Texas sales tax is $1,875. That will cover the entire transmission and make a solid down payment on the head gasket.

The tradeoff is a new car _will_ be more reliable than a 14 year old MB.

In my mind the question comes down to which offends you less: paying taxes you can avoid, or dealing with an older car?

- JimY