About five years ago I had to make this decision on my '81 300SD (well actually the decision was whether to replace the tranny or junk the car). Believe it or not a small shop in Opelika, AL, found a used tranny and installed it for about $1400 if I remember right. They did not know how to adjust the vac modulator and it shifted awful when I drove it home but I got on the forum and with some help from Kerry got it adjusted properly. Have not had a problem with it since then.

This was not a nice rebuild from the California guys but I think the labor was about $600 so your quote sounds reasonable.

I say this to help reinforce your decision not to junk the car. Do not think I have heard any forum member say that he got rid of one of our 30+ year vehicles and replaced it with a modern car and was happier with the new one. Most everyone laments letting the old car go.