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There's no point going into the "should have" done this and "should have" done that at this point.
Main thing is that if affording to keep a 240d on the road is proving difficult, there's no easy justification for spending that kind of money on a new mercedes which will be even more expensive to maintain... especially when the "smart" alternative is a mid-90s Accord or Camry type car, if the bottom line really is the cheapest possible transportation.
I'd keep the 240d, if it's still servicable.
Point number one is that as Tom said, it's absolutely not safe to drive on a tire that has a "little bump" in it - it'll blow out at the worst possible time and you'll be back where you started.
Even if you have to borrow money for a tire, your first move from here is to get a safe wheel and a safe tire, even if it's used, on the car. Then, you can assess everything else from there. But the very first un-avoidable issue is that a lumpy tire should barely even be driven to the tire shop, and that trip should be made very cautiously.
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~Michael S.~
Past cars:
1986 300SDL
1987 300SDL
1982 240D
1982 300SD
Current:
1987 300SDL
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