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I disagree with calling this a practical collector car. It's 37 years old. The fuel injection systems can fail, the electrical gremlins are common, and finding someone who knows how to properly service a car this old is becoming increasingly difficult. You'd need a dedicated mechanic.

Insurance shouldn't be a major issue if you go with a classic car policy. Most companies will insure a 1987 Mercedes for $300-500 annually depending on value and usage. That's one of the few affordable aspects of ownership.