Well, Having only owned my 240D for a couple of months, I haven't had any repairs, but it seems like a pretty good deal unless it completely falls apart. Economical- yes: ~30mpg on the highway, $1650 for the car. Manual everything means stuff doesn't break.

If you want a different option, probably the route to take in my opinion if your not wanting a MB, is still not Japanese. I have an old '86 Lincoln Town Car with 180k miles on it. Ford 302 V8. VERY economical, believe it or not. Why? Do maintence yourself: parts on 302's are a dime a dozen, not too bad to work on when it needs it, and in 2 years of driving it, about 12k a year, the ONLY thing it needed besides gas, oil changes and fluids (leaked a bit of everything) was one alternator. I think it was the original one. A car like that will run you 1000 bones in decent condition, and will get 20 mpg on the highway, with decent power, TONS of room inside and trunk, quiet, comfortable (armchair on wheels) and dependable. Started every day last winter sitting out on the street.