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Until you drive it and do some in person diagnosing, "wants to rev high before it shifts" could mean anything... could be as easy as a shift linkage adjustment or as bad as a transmission replacement.
Can't say I agree with the statement that "300Ds aren't worth more than $1000 anymore despite their condition because it's a real hobby car." That's simply not true for w124s (as the OP was inquiring about... nor w123s for that matter). These ain't Triumphs or MGs...
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1991 300D 2.5 "Rocinante"
2002 Golf TDI "Teen Spirit"
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1984 300D
1966 Mustang I6 3sp
1985 Mazda RX-7 GSLSE
1982 Toyota Supra
1977 Datsun 280z
1971 Datsun 240z
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