My guess is about 2 quarts. Once I was surprised by my
300SE with same reading.
Try taking several readings. Often one can get
different results over a matter of minutes.
I believe that a past post by a tech stated that
real damage occurs if it bottoms out. This was with regards to the low oil indicator lamp which I believe
goes on when there is minimal oil left, but enough so that the engine does not go postal. Minimal meant
in need of over two quarts oil.
Also depends on how long you travelled with low oil
and whether it was a progressive loss.
Nice to hear that your 240D project is doing O.K.!
Happy New Year!
1979 300D 199 K miles
1995 C280 95 K miles
1992 Cadillac Eldorado Touring Coupe 57K miles
1979 240D 140Kmiles (bought for parents)
SAN FRANCISCO/(*San Diego)
1989 300SE 148 K miles *SOLD