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Been there and done that... Was forced to sell my beloved estroil blue '99 M-Coupe when my wife was pregnant. I say "forced" but I made the decision and it was the right one.
We first purchased a Jeep Grand Cherokee then added a 4 door sedan to the mix -- a Jetta to be exact which owned for 6 months and couldn't stand it so we sold it and bought a Lexus IS. As our family grew (both kids are now 8 and 5) we moved up to an SUV with 3 rows of seating - Lexus GX470. The extra seating is nice when you have a family of four esp if they play sports. You will be driving your kids, their friends and their teammates around along with chairs, equipment etc. We eventually sold the IS and bought a '11 BMW E90, but we kept the Lexus the entire time. Now we have 3 kids (our 3rd was born Aug 13th. Is an SUV a requirement, no, but it does make life easier and you won't catch me dead in a mini-van, so it's a good compromise.
It's not the end of the world and eventually you will find yourself back in something that brings a smile to your face. It is amazing how having kids changes your putlook and priorities though.
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