That's some bad damage. I'd walk.....$2950 for that? That's only $200 less than I paid for my mint W126 420SEL.  Not worth it. The 2000 onward W210's are much better anyways, even if they are gasser. The M112 gas engine is good enough that its not worth putting up with the early W210 issues for the diesel in my opinion. My brother routinely gets 30+mpg on the freeway in his 2002....on cheaper fuel...in a faster car...and the engine has been 100% problem free...and he drives a LOT.
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-diesel is not just a fuel, its a way of life- 
'15 GLK250 Bluetec 118k - mine - (OC-123,800)
'17 Metris(VITO!) - 37k - wifes (OC-41k)
'09 Sprinter 3500 Winnebago View - 62k (OC - 67k)
'13 ML350 Bluetec - 95k - dad's (OC-98k)
'01 SL500 - 103k(km) - dad's (OC-110,000km)
'16 E400 4matic Sedan - 148k - Brothers (OC-155k)
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