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if you're a DYIer the engine bay is fantastic (huge compared to the engine and the lack of all the crap on federal cars).
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That's exactly why I jumped in on my 80' 280SL. I live by the DIY Bible and the amount of working room with a M110 is amazing compared to the V-8s.
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You can get about the same mpg from a V8, and leave the line quicker - if you drive highway, the 6 is fine.
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A lot of how you leave the line depends on the differential ratio. The M110 usually have the higher ratios so you'll be running high RPMs on the highway (hence also why the poorer mileage with the smaller engine). If you are not too concerned about burning out at every traffic light then you can get the lower ratio differentials, such as a 2.88 out of an 85 deisel (D, SD, or TD) and save some gas in the long run.
Also, a euro M110 is rated as about 185 HP, which is pretty good considering some of the U.S. version V-8s put out less than that!
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Not sure of your location, but Grey Market stuff is coming off the road here in droves in Texas... well most of the US in general.
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Not sure what you mean here . . . Are people selling them more so than before?