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The following are just my thoughts and opinions:
If you want something special get the 280TE. That said, the TD will get better fuel economy, similar performance, easier to get a hold of parts, simpler to maintain, more reliable, and still just as desirable in the second-hand market.
The M110 is not known for good fuel economy and being a K-jet system, you need to be familiar with the system to keep it running optimally. Since it is a Euro car, none of the electronic adjustments or "duty cycle" tweaks will get you anywhere so you need to understand the basic mechanical system to do any diagnosis.
If you're looking for a "daily driver" that you can run and forget about, the TD wins hands down. Keep the valves adjusted, change the oil on time, treat the tank with biocide and you can pretty well just drive it.
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Current stable:
1995 E320 149K (Nancy)
1983 500SL 120K (SLoL)
Black Sheep:
1985 524TD 167K (TotalDumpster™)
Gone but not forgotten:
1986 300SDL (RIP)
1991 350SD
1991 560SEL
1990 560SEL
1986 500SEL Euro (Rusted to nothing at 47K!)
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