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C320 only if you go 203 chassis.
W210 E320 or E430 would do fine.
Given your location, lookout for rust in both chassis. 210 has springperch rust issues.
I was able to find a 2005 E320 CDI in your budget. Last trip I averaged 42.7 MPG. About 30MPG around town with my heavy foot.
Non-MB I'd look at a Toyota Avalon. Great, bullet proof engine, nice spacious interior, and has a substantial driving feel to it like a MB, even with its front wheel drive.
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