Michael Jackson's black 1985was among the singer's memorabilia to go under the hammer in New York on Saturday.
It sold alongside more than 80 items related to the singer, including the "Holy Grail" of Jackson memorabilia:.
The Mercedes 500 SEL was snatched up by Charlie Moore, owner of Hollywood Star Cars Museum, for $104,550.
According to Darren Julien, President of Julien's Auctions, Jackson bought the automobile to drive around his 2,600 acre Neverland ranch, which he occupied from the 1980s through to 2005.
Significantly, the car was sold with photos of Jackson driving it.
"When have you ever seen Michael Jackson driving a car? He was always chauffeured or driven," said Mr Julien.
The 5-litre, V8 engined Mercedes was later gifted to Jackson's aunt for her birthday, after which she customised the license plate to read "TKS MKL".
Mod cons in the vehicle include an automatic temperature control, a "premium" sound system, electrically powered leather seats, burr walnut trim and an outside temperature sensor.
Earlier this year, Julien's Auctions was selected to auction off items from the King of Pop's Neverland ranch.
Other vehicles in Jackson's collection included a Harley Davidson motorcycle, a couple of customised Rolls-Royce limousines, a GMC truck and a 500bhp tour bus.
The auction took place at the Hard Rock Cafe in New York City.
It is not yet known if Mr Moore will showcase the Mercedes in his museum. Other exhibits include the 1989 Batmobile, the Volkswagon Beetle featured in Walt Disney's 1967 hit The Love Bug, and a 1955 Ford Thunderbird owned by Dennis Wilson of the Beach Boys.