That sounds like a good price, I wouldn't worry about the headgasket if it blows it blows.
The price seems about right their was a 1997 E320 in my local paper with 82k miles on it. They were asking $13,500 US.
The used car market in the US has went to hell! I am loving it! I am so tempted right know their are so many clean E420/430's and CLK's coming on the market! You can snag clean low mileage CLK's for mid teens!
