Guys, I ended up buying the car for $2k + my dead '79 240D, and I think it was a good deal. The climate control works pretty well, tranny shifts smoothly and the engine seems nice and strong with no noticable knocks or anything. I checked under the wheel wells, the jack points,the front end and the rear end and saw no rust. The paint is original, and I believe the wheels have been replaced, as they are alloy but not the "bundt cake" style. The car seems to be well maintained, but time will tell.

86560SEL - This may be the same car you were talking about. It's light blue with blue leather interior. The mileaege is 221k, and I believe it was a single owner trade-in that my dealer purchased from a MB dealership.

Here's a photo from the dealer's website.

Thanks for all your help, guys.