I took our 240D on a 900 mile towed trip. I put the rear wheels on the tow dolly and left the front wheels on the ground. I locked the steering column with the wheels straight. I made up some removable tow lights. It towed like a dream.
We owned a '84 300TDT that had been flat towed. I didn't find this out until later.... Reverse gear was marginal after that.

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My Truck.. 2007 DODGE, 5.9 Cummins, 6spd stick, 4X4. My car..1977 240D, OTHER WHEELS...1955 VW Oval window bug, European Delivery (Holland) with a 1700cc, 2 barrel, Porsche drum brakes. 1939 WILLYS Pick-up. 1967 Triumph 200cc Tiger Cub. 1976 Honda 550F 4cyl Motor Cycle.