Ok, here is an idea.
Look for a 1993 to 1995 w124 to your liking that has a new wiring harness, tranny rebuild, and the A/C Evaporator replaced. If its a wagon, make sure the rear suspension has been had the hydraulic spheres replaced.
When you find that, buy it. I'm betting that car will keep you under your money goal. It will take a while to find that car, but its not impossible.
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77' 300D, "Cartman" SOLD @ 150K (didn't know what I had)
83' 300SD, "The Superdon" 325k+ @ 28mpg
95 E320 wagon, "Millennium Falcon" 231k+ @ 24 Mpg
95 E300D, "Sherley" 308k @ 33.69 Mpg, currently anticipating a head 
99 Suzuki Intruder "Trudy" @ 45 mpg
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