Don't forget the chain. On the V-8's the chain starts to stretch and will fail eventually. They say 100K, don't go past 150K, and if you are smart you'll do it soon. Once the chain starts slapping around inside, it will damage the rails, badly. This I know first hand, and the bottom rails are major work to R&R.

Course, now I have a new engine!

Larry mentioned the harness, which might also bear with replacement, just on principle. If you are patient, you could DIY.

The other thing I replaced on mine was the crank sensor. My car would die at odd moments, restart. $100 part, you could do easily with a manual.

Find a good independent mechanic, and go through the car at your own pace. It does sound like that guy sees $$$ in a new used car owner.

Look around here, plenty of info for you. Best of luck. Aside from the gas mileage, these cars are lots of fun, good highway cars, a classic chassis.

__________________
Peter
1985 300TD 4-speed 212K
1992 400E 343K
2001 E320 72K