Buy a California based, 240D. You can easily get one for 1500-2000$, in excellent shape. Then spend the balance on such things as new brake pads, full lube change, rebuild the seats, etc. It will last you damn near forever.

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'76 240D-Sold
'78 240D-Sold
'85 300 SD, 165K-Sold
'88 300 TE, 165K-Sold
'64 Porsche 356C Cabriolet- under restoration
'86 560SL 124K Miles-Sold
'94 320E Wagon, 74K Miles-128K Miles JUNKED
'06 E350 Wagon, 84K Miles
07 SL550, 14K Miles