I'm no negotiating wizard, but shouldn't you have started with a price lower than the $2100 that you had in the envelope? Apparently you would have been fine with paying that, but the dealer automatically added a couple hundred to your offer. I wonder what he would have done if you would have started out at say $1500 instead. Would he have gone to $1700? Would he have still gone to $2300? Man, I hate negotiating prices. Especially with car dealers.
Anyway, congrats. Sounds like you got yourself a good little 240. Get those rims painted up the same and you're set.
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'78 240D
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