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Drive the Mercedes.
The 96 Nissan is a D21 Hardbody with their 2.4 liter engine. I read all the posts here and I think it is an automatic, since it was not confirmed to be a manual.
Typical problems are mass air flow sensor and oxygen sensor, both of which can be an issue but not bad enough to light off the CEL. I do think it is OBD2 so you can get it scanned for free at Advance Auto Parts.
Twin cam port injected engine, same as the Altima of the same era which does about 32 highway, so your mileage is pitiful. If it was running right I would expect mid 20s highway and about 20-22 city seriously depending on your trip length stops and traffic congestion.
Just had a thought, check your temp gauge, those year Nissan's are notorious for bad thermostats. They go bad wide open so the engine never warms up and your temp gauge will probably barely get off the cold mark.
THAT SINGLE PROBLEM MAY BE THE MOST IMPORTANT THING YOU SHOULD GET FIXED IMMEDIATELY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
It should warm up very quickly, in less than 1.5 miles if it has a factory thermostat that is working properly. If I were a betting man I would put my money on a bad thermostat as your problem right now and it's easy to replace and fairly inexpensive.
I WOULD USE OEM NISSAN THERMOSTAT! I have had much experience with aftermarket and almost universally they will not work as fast and as well as OEM.
regards
Mech
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