Their is no right way a W126 should shift, you can adjust them to shift as hard or soft as you want. But you should feel every gear. As far as ride goes, German cars ride harder than luxury American cars. But they handle much much better. ie no large barge floating down the road feel.

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2006 CL500
2009 C300 4matic
1969 280SE
2023 Ram 1500
2007 Tiara 3200