I appreciate your comments. I'm leaning toward holding off for now as I have yet to see anyone mention a car with this many miles.
We seem to have a similar market here. For $8-10k it looks like you can find a low mileage vehicle. I'll just have to keep saving if I want to pay cash...
I've personally never been scared off of high-mileage cars. I honestly believe your just about as likely to have issues a 110k as you are at 160k. thats why with any used car you need to have a "used car budget"- money you set aside each month to cover expenses related to the car.
If your at all handy, I found the R170 is just about the easiest car I've ever owned to work on. Fuel filter, fuel pump, rebuild the roof cylinders, diff seals and fluids, cooling system etc. all are easy access, quick DIY jobs.
I'd trust a properly cared for 160k car over a improperly cared for 90k mile car any day. Just find a non-MB shop that does good work, start saving for your big expense budget (when a friend of mine bought a 190k mile car I told her to make sure she puts away 200 a mo because then after 12mo she can easily afford an engine or trans or whatnot- but even after all that work its a lot cheaper than a lower mileage car.
If thats the true story on that car, I'd say lowball offer them.
A good R170 around here is going to run you 10-11k. If you can get that car around 5k, even if you have to replace everything- Engine, Trans, and a bunch of other items, your looking at 9-10k total for a car with everything in tip-top shape compared to buying one with 100k for 10k that may still have problems down the road.
I'd try to see if you can get the price down 1k or so and then its probably not a terrible move.