A low-mileage well-documented car is no guarentee either. I bought a '88 560SEL no rust, with 68,000miles and is so clean on the inside that it still has the new car/leather smell. Also I had full records of its maintainance at the dealership from where it was purchased near Bedford Hills NY. Of course it turns out that their mechanics aren't qualified to work on a mercedes, much less a lawnmower and I make that statement because:
Use of Pennzoil 10w30
A right side head-gasket with a parts# sticker still on it obstructing the bead
Cheap oil changed requently is forgivable, however the sticker is not. Besides, based on the condition of the oil sludge, I'd say the PO was getting screwed by the dealership. Now you may ask why I know the gasket had the sticker on it when it was sandwiched between the head and the block? Because I'm rebuilding the top end of the motor as we speak... its been my weekend project.
I bought this car becuase it had low mileage and the body is in great condition. The wood is perfect as is the dash. The only blemish is the obligitory hole in the leather on the left side of the driver's seat and some fading due to sun. Of course in the first 3 days I owned the car I put more miles on it than it had driven in any of the prior 4 years (OrigOwner died and left it to daugher who kept it for several years before selling it to me).
before I go into a long tirade, I'll sum up. There are no guarentees by going low-mileage, its all looking at it and making a gut call. The trick is educating yourself in what to look for. I would probably walk away simply becuase of the car-cancer aka rust. I know an engine would cost me $500 to $3000 depending on the extent of the work needed (gaskets to full rebuild) and a tranny could cost as much as $1500. Keep in mind these are my costs as a DIY'er. If you wanted a donor car for another 560, it sounds perfect, but if it is to be your first/only 560SEL then I'd walk.
Either way good luck!
Scott
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