Go for the Merc. As i said before that it is more capable than the BMW. The BMW literally starts crying at the mention of off roading or sand. The Merc has a really plush interior and should fit 2 kids and 1 dog safely and comfortably. My partner,s car has carried 5 adults in good comfort and if you get the newer one, which your budget will fit, i see no reason why it wont fit a max of 3 kids, if you please.
And at the end of a day a Merc is still all class compared to a BMW which shouts "hey look i have monehh"
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Here,s what you can expect...
http://www.drive.com.au/used-cars/ME...938781892&pt=1
http://www.drive.com.au/used-cars/ME...938781892&pt=1
The only reason i am not suggesting any Jeeps is because of the safety aspect. Having driven both I guess I will keep the Jeep for myself but the day i have kids,i will get something else,preferably a Merc.i can happily live without my 4WD as long as my kids would be safe.