It's easier and cheaper to drive across the border for sure. Nafta won't apply, you will have to pay duty. But getting it through EPA and DOT compliance is exactly the same as importing it from Europe. You will need to get a letter from the manufacturer stating that this particular VIN complies with all US requirements. If Mercedes is unwilling to issue that letter, then you will need to contract an independent commercial importer (from a list prepared by customs) to comply the vehicle. This can be a very large expense, depending on what needs to be done. The ICI will then prepare your paperwork and your vehicle will either be accepted, in which case you can drive it home, or rejected, in which case all you have to show for the effort is an empty wallet.



Changing engines, not a huge mechanical issue, but how will you get DMV to change the title from gas to diesel? CA can't be any less picky about that stuff than NY. It would flunk inspection here on that alone. I bet CARB would spoil your day.