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I agree with JB3. The mechanic doesn't want to do it. The thermostat housing and water pump bolts sometimes give trouble but most of the cars I get here are salt caked rust buckets that sat for 20 years before I got them. The most common problem I have with an engine that's been sitting is a while is a stuck thermostat and I have been able to save every thermostat housing with a little heat and some penetrating oil.
The AC bracket is huge but it isn't insurmountable. The compressor is held on with 6 bolts. The bracket itself slides over 2 studs for the motor mount arm and one manifold stud. The few remaining bolts are on the front. After that you're looking at everything you need to replace.
If you don't want to chance a broken thermostat housing bolt don't replace it. You can leave the thermostat housing in place and only remove the water pump housing. The water pump bolts themselves can break but you can repair or replace the housing for far less than quoted. The water pump housing to block bolts have never been a problem in any engine I've worked on.
For an idea of what I work on see the pictures for the most recent W115 and W123 I've parted. The W115 was some glass, a drive line and suspension laying in a field. I took the pump and thermostat housings off the OM617 in the picture without heat or penetrating oil. The engine was seized - full of water and rust.
I have the thermostat and pump housing for your car in good shape. PM me if you need them.
If you really feel the car is going to be totaled rather than fixed at the quoted price you have little to loose trying to fix it yourself.
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1969 220D 5 Speed (OM616)
1983 240D 4 Speed
1985 300D Auto 376K
1985 300D Auto 275K
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