I have a 1985 300SD with 300,000 miles.

The body is in great shape. The AC blows cold air. The electonics work wonderfully. Paint is clean. Power windows, locks, sunroof scoot. The cruise is fairly tight. Etc... You get the picture.

However, on Tuesday, the turbo went out. The car still runs, although without much power and expelling enormous amounts of oily smoke.

As I see it, I have one of three options:

Option A) Replace the turbo, and carry on...until the next big thing happens. Cost of $500-1000 (ish)

Option B) Replace the entire engine and turbo. A new/rebuilt engine (with turbo) will come with a 4yr 50,000 mile warranty (and cost $6-7k to buy and install)

Option C) Punt and get a different car.

I'd really like to make a decision quickly (i.e. today or tomorrow), so any feedback you guys have would be great!