I echo what the others say, and will address two things they did not.

You ask if its worth it to do the work on your car, which you only paid $1,500 for. That question doesn't necessarily depend, for its answer, on the car's purchase price. It depends on its condition and its value to you.

I suggest that you sit down (or go outside and pop the hood if its easier) and do an assessment of what the car is going to need in the next two years, apart from the engine install. I recommend you start with the front bumper and move back, component by component. You don't show your location in your info... but unless you're in a hot dry state, or the car came from same, rust is a huge factor in this assessment. Then decide if you're game for whatever the end investment estimate looks like.

This is especially true relative to your DIY level, whether in particular you will be doing the motor install yourself or paying a shop. Around here, the bare minimum a shop will charge for that job is 12 hours (plus other incidentals, such as changing the oil and coolant, for example), assuming no hiccups. Many shops charge considerably more (and some won't even do a customer-supplied-used-motor install unless they can see and hear the motor run beforehand). Also bear in mind that the 12 hours assumes them receiving the donor motor ready to install. If you roll up with a parts car that they have to pull the motor out of, add another 50 percent to that labour figure.

There are detail differences between the '85 and your car, really relatively minor -- the '85 will have a slightly more complicated vacuum hose setup and it has a black box in the passenger footwell that controls the EGR function. Some shops freak when handed a situation like that if they aren't familiar with older Mercedes (freak = cost creep).

You mention one source is a family friend. Ah. In that case, it is DOUBLY required that you be merciless in assessing the donor car's condition, as chances are pretty good realistically you won't have much recourse once you've bought it, unless you want to create an immense issue. (And if you have to swallow your anger from a problem, and not create an issue if things turn out wrong, chances are you will be angry about it for a long time.) Friends selling friends cars, whatever the situation, isn't always a good idea.

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Mac
2002 e320 4matic estate│1985 300d│1980 300td
Previous: 1979 & 1982 & 1983 300sd │ 1982 240d

“Let's take a drive into the middle of nowhere with a packet of Marlboro lights and talk about our lives.” ― Joseph Heller, Catch-22