I used to have an 82 240D and in commuting and long trips from Ca to Or I would get consistantly 33mpg but that was before ULSD. I cannot remember(old age disease) if Or had the LSD or not(1997-2002) but Ca, did. So 35mpg is not out of question. But as a few have stated, it would take a log over many tanks of fuel from the same source to verify actual mileage. I had mountains to go over which is a trip up the truck lane on some pulls.
Bud

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1987 300D Turbo, 175k mi., 1998 BMW 323i Convertible, 1997 F250 4x4 7.3L PSD

i'll agree you must check over numerous tank fulls,hey you think thats good right after i got my 86 sdl i got 36.8 mpg on a half tank,but the next time i filled, it dropped down to about 27.since then over the last 5000 miles my combined avg is just a hair short of 32.

What is ULSD? Thanks...

I always get 30+ mpg with my 82 240D stick, but checked my odometer against mile markers(who knows how accurate they are) and my odometer rings up a mile too quickly. My speedomerer is about 10mph fast, so I go down the road the speedometer says 80mph, sounds like I am going 100 and when I fuel up the numbers say I am getting 35.5 mpg. What is not to like about this --- I love it so!

You need to average over a lot of tanks to get real world numbers that pertain to your driving style. For example over the past 21,000 or so miles my SDL has averaged just shy of 24mpg.

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1999 SL500
1969 280SE
2023 Ram 1500
2007 Tiara 3200

Ultra Low Sulfur Diesel - sulfur causes acid rain - H2S04

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1974 240D 3.0L 4(M) - 250K -OM617.910 + 300D FW + Rajay turbo power!
1977 6.9 3(A) - 84k