Welcome to the forum and congratulations on your purchase!
Here is the "official position" on measuring oil level: http://www.w124performance.com/service/Index/Resources/00.57EngineOilLevelSI.pdf.
So try measuring the MB way and see what you find. I find that cold and warm readings are comparable on my cars....but perhaps yours is different.
Any possibility that you're rapidly using oil without seeing any smoke?
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14 E250 Bluetec 4Matic "Sinclair", Palladium Silver on Black, 154k miles
06 E320 CDI "Rutherford", Black on Tan, 172k mi, Stage 1 tune, tuned TCU
91 300D "Otis", Smoke Silver, 142k mi, wastegate conversion
19 Honda CR-V EX 61k mi
Fourteen other MB's owned and sold
1961 Very Tolerant Wife
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