PJ67coll,
The way the transmission works when going into drive may not be a problem. The transmission normally goes into 2nd to eliminate creep and then jumps into 1st when you press the accelerator. So that part of it may be working properly. You should get underneath and see where the leak is coming from. Maybe it just from a gasket or the drain plug.
Make the owner a "loball" offer and see what happens siting bad transmission,grey model, high mileage, non turbo etc. If can handle most mechanical problems your self, your repair bills will just be the price of the parts. You should be able to get a rebuilt trans for $1200 and install it yourself if necessary.
I've had a lot of non turbo MB and I agree with Edge that I would only buy a Turbo. You get 50% more power with no decrease in fuel mileage with a turbo.
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