Many years ago, I dealt with headlight problems on my own 87 240.

The problems were all in the connector to the headlight relay. I'm certain you'll find yours is in similar shape. They seem to be undersized for the current they're carrying.

Worst case you may have to replace the headlight relay, but I bet you won't need anything more than just a new female spade connector to connect to the tabs on your relay.

On an '87 it's easy access (if you don't mind lying on your belly a bit). It's on the inside of the firewall, right in front of the brake pedal. On mine, the connector looked fine, until I turned it over. The side toward the firewall was charred.

But the relay was fine, and continued working for years after I fixed it. Same thing happened about 5 years later on my 92... that's the same relay, but buried in the center dashboard for your convenience.

--Rob Bareiss, New London, CT