smp, the Haynes Service and Repair Manual for the 124 cars specifically states "To raise the rear of the vehicle, position a block of wood on a hydraulic jack head and position the jack underneath the final drive unit. Lift the vehicle to the required height and support it on axle stands positioned underneath the rear rubber support blocks, which are located directly underneath the vehicle jack location holes in the sill."

A MB dealer tech confirmed that this method was fine. I have lifted the rear of our 124 cars using this method without any adverse consequences many times.

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Fred Hoelzle