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mj_sid summed up pretty well the big differences. Both are good.
I would like to add that with the budget set at 2500 you can only pretty much get W116d or beat up early W126.
A cool thing of the W116 that many people forget is that many of their parts were used into the W123. so many suspenssion, steering, body accesories are directly transplantable...
not so with the W126 and even between early W126 and late W126.
The bane of the 116 is rust, but it is a more stylish (looks like a beefy SL) more nimble car IMHO than the W126 in the same price range.
W116 are rarer and flashier automobiles (got Chrome? this one is only second to 1950's cadillacs!).
On the other hand, W126 are modern cars and could compare with any mid level offering even nowadays... (note that that can be a negative thing when you are a DIY)
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Aquilae non capunt muscas! (Eagles don't hunt flies!)
1979 300SD Black/Black MBtex239000mi
1983 300TD euro-NA. White/Olive Cloth-MBtex 201000mi. Fleet car of the USA embassy in Morocco
1983 240D Labrador Blue/Blue MBtex 161000mi
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