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What about interior condition? Do these cars hold up well inside, or do the plastics and trim tend to deteriorate? I'd rather have a car with a worn but solid interior than one with cosmetic damage.

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.

From the photos I've seen of this particular example, the interior looks relatively clean and well-preserved. The seats show some wear but nothing catastrophic. It appears to be a southern car that was garaged, which definitely helps with interior condition. The steering wheel has that nice patina but still looks usable.

The interiors vary widely depending on usage and storage. The dashboard plastic can crack and fade with UV exposure, and the leather seats can become brittle. Replacement panels aren't cheap if you want to restore to original specifications. Budget accordingly.

Has anyone looked into insurance costs for owning a car like this? I imagine classic car insurance might be quite reasonable, but I'm not sure if there are special considerations for a 1987 Mercedes.

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.

I've always thought the 260E was the sweet spot in the W124 lineup. Powerful enough to be fun, economical enough to not bankrupt you on fuel, and common enough that you can find examples without paying collector prices. A well-maintained one could be a smart investment.

This discussion has been really informative. I'm leaning toward checking out a 260E if I can find one in similar condition to the one featured. The consensus seems to be that if you're prepared for maintenance and have realistic expectations, it's a worthwhile classic to own. Thanks for the detailed insights, everyone.

The handling is actually pretty good for a car from 1987. The W124 platform was considered quite advanced for its time. Brakes are adequate but not outstanding by modern standards – you'll need to plan ahead more than you would in a newer vehicle. The steering feel is mechanical and direct, which enthusiasts appreciate.