Well, I know Mercedes pretty well, and also do my bit on eBay too, although nothing as expensive as a car. So here's my thoughts:
He DID state
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WELL MAINTAINED AND GARAGE KEPT.
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. Hardly well kept when the most recent tuneup was a number of years back. I've never seen secondary wiring "disintegrate" though, did you maybe jerk the wiring out of the resistor ends? Usually you can save the wiring but replace the broken ends, because believe me, I've been through what you went though in having to bust stuff to get the plug wire ends off when they're seized like that. My tool of choice was a chisel bit in an air hammer, then pick pieces out with a needle nose and then compressed air. That's AFTER you jerk the wire out of the end. Then you can replace the end (crimps on) and the resistor end. Sometimes there is a shellac-type of coating on the wire itself, maybe that's why you thought the wire was disintegrating. So anyways, that wasn't exactly honest when he said well maintained. They shoulda at least pulled one plug out to see how worn they were. By chance did the #1 plug wire pull off OK, or were they ALL like this? They should at least check one damn plug! So score -1 for lying about well maintained and - another 1 for not doing a very good inspection on it.
As far as the cosmetics you are finding wrong, he kinda covered his own butt on that by this:
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Although vehicle is in great condition as represented, vehicle is sold as is. All questions should be asked prior to bidding and personal inspection of vehicle is encouraged.
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So you could have had a warm fuzzy feeling by talking to the guy for 2 hours by phone, but really it was up to you to give it the once over before buying. I can imagine how you feel after doing the "buy it now" and now you're in wonderful downtown Effingham, IL and just want to head'er back to Texas (where Bob Wills is Still the King). Then you notice stuff later, but he DID cover his butt on it as far as I'm concerned. But I don't think he should feel obligated to give you back one thin dime. YOU did the "buy it now" sight unseen, just pictures and conversation. If you would have bid the $4000 to begin with, maybe you would have gotten it for that, or maybe not, maybe someone else would have run it up over $5000, that's the chance HE took by agreeing to sell it as a "buy it now" of $4200.
Sounds like you probably did OK for $4200. It doesn't seem like you are all that interested in giving it back, unless it really is the whole hassle and expense of returning it. I wonder on that "buy it now" if you could have done a better inspection and backed out on the deal when you were there? That I'm not sure of. I can understand how the prospect of returning it would make you want to just keep it. I guess that's the way this stuff works out sometimes. I agree he did seem to verbally "polish this thing up" quite a bit in the eBay auction, but not any more than alot of people do. I always try to be really up front about the type and condition of the stuff I eBay, don't want any hassles after the auction at ALL.
Gilly