According to the Kelley Blue Book, you paid about double of what the car is worth. They show a 89 560SEC with 137,000 miles and the basic stuff going for about $4300. I did a cut-n-paste on what was returned below.

Go to KBB.COM and check it out yourself.

I doubt the seller didn't know the car was drinking a qt. every 300 miles. If the "low on oil" light works he had to notice it unless he was oblivious to this sort of thing, in which case he may have run the engine low on oil. Good luck with this car. You may need it.

Engine: V8 5.6 Liter
Trans: Automatic
Drive: RWD
Mileage: 137,000

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Equipment
Air Conditioning
Power Steering
Power Windows
Power Door Locks
Tilt Wheel
Cruise Control
AM/FM Stereo
Cassette
ABS (4-Wheel)
Leather
Dual Power Seats
Sliding Sun Roof
Alloy Wheels




Consumer Rated Condition: Good
"Good" condition means that the vehicle is free of any major defects. This vehicle has a clean title history , the paint, body and interior have only minor (if any) blemishes, and there are no major mechanical problems. There should be little or no rust on this vehicle. The tires match and have substantial tread wear left. A "good" vehicle will need some reconditioning to be sold at retail. Most consumer owned vehicles fall into this category.


Private Party Value Search Local Listings | List This Car for Sale $4,300
Private Party Value is what a buyer can expect to pay when buying a used car from a private party. The Private Party Value assumes the vehicle is sold "As Is" and carries no warranty (other than the continuing factory warranty). The final sale price may vary depending on the vehicle's actual condition and local market conditions. This value may also be used to derive Fair Market Value for insurance and vehicle donation purposes.


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'91 300-SEL