Book value does not reflect what an enthusiast will pay, not to mention the heightened interest in Diesels these days. Unless the seller is completely in the dark, an $800-1000 MB Diesel will need a lot of work to be a safe and reliable daily driver. Search for similar cars in Autotrader, eBay, craigslist and other listings. You'll find lots of good running 190Es for under $1000. 190Ds for $1000 are basically parts cars. Assuming that car is as described, $3000 is a fair price today. People are paying twice that for cars in similar condition.

Which brings up another consideration. The market value of these cars far exceeds their typical insurance value as you found in this car's book value. Expect a battle with the insurance company if you have to file a claim.

Sixto