Buy it, it sounds like an O.K. price. There are two things you should know: you will probably have to put money into it, not a ton, but some, and the other thing is that Mercedes-Benzes last a long time. They have good overall quality, and as long as you do reasonably good maintenance, the engine will not blow, ever. M-B's are good for 250k on the engine before a top end rebuild. They also hold their value. Make sure things work before you buy, or the things that don't work you can live with. Good luck!
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2002 Mercedes-Benz E320 4Matic
1995 Mercedes-Benz E320 Wagon
2005 Land Rover LR3 V8 SE
1999 Audi A8 4.2L quattro
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