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I worked as a car salesman for quite a while, great job for a college kid, but the economic downturn and new opportunities led me elsewhere.
Yes, it is true that salesmen will do as much as they can to get you in the door, with the exception of specific discounts. Most successful salesmen rarely haggle over the phone, simply because its too easy to say no or to shop other dealers. If you go down there with cash in hand and make a solid offer, I'm almost certain this guy will budge some. Go there armed with as much knowledge as you can, offer a bit below what you're comfortable paying, and go from there.
The W126 buyers lists what to look for in detail, and if you're unfamiliar with the car, spending $150.00 for a dealer PPI could save you thousands. The PPI for my E320 wagon purchase revealed a leaking head gasket and a few other minors issues I didn't notice during my amateur inspection. Since I liked the car anyway, I made a low ball offer, which the dejected seller accepted. With the issues fixed I now have a fantastic car well within my initial budget.
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