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Avoid Mercedes like the plague. My friends father has worked for a local dealership for about 20 years doing roadside assistance and is very familiar with MB quality. Just for the record his father drives a honda and refuses to buy a mercedes, even with his generous discount the dealership...

Look at the Acura TSX. Fully loaded with the Nav system will run about 28k. My wife has had one since April and it's a nice car. Jeff