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Most probably the Alternator is not charging the battery properly and battery dies after initial starts. I will bet that it will not start in the morning again, if it is the alternator issue. It should put out 14v when car is running, most probably the carbon brushes are bad which comes with the voltage regulator. It is about $33 and it takes 10 minutes to change it, so I think $160 is a little too much but still not that steep. Does you machanic gaurantee that this will fix you issue? I do not think it is your ignition switch, here is the test: try to turn off the car and start right away for 5 times. If car starts or engine turns 5 out of 5 times, your switch is good.
If you are up to doing it yourself, it is very simple DIY job, just open 2 screws and take old one out and put the new one and tight the screws.
See the attached pic for the part, it will give you an idea how easy it is to put it in. You can buy it from the sponsor of this board, FastLane.
As for as the ignition switchis concern,
Good luck and Keep up posted.
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87 420 SEL
Looking for a nice mid 80's MB diesel. 
87 BMW 528e (Sold)
99 TOYOTA 4Runner
1989 Honda Accord (Sold)
1988 Honda Accord (Total)
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