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Aha, been here, done that. Have a 1990 240DL with 110k.
Light warning is a common issue, I finally disabled mine. Minor fluctuations in voltage can set the thing off, and they are hell to trace, otherwise the dealer would have fixed it by now. 5 minutes to pull the instrument panel and pull the bulb, literally. After all, man lived for thousands of years without bulb warnings and seemed to do ok.
Overheating can be a more serious issue. These cars have a device in the back of the instrument panel that absorbs fluctuations in the temp of the engine and keeps the temp gauge steady. Early 240's did not have and owners would worry when the temp gauge moved. It is a $20 part that can be easily replaced.
However, I thought that I had a bad one, since my guage was showing hot to the point of overheating. I thought it was the temp regulator, the parts guy at the dealership thought so, online research seemed to indicate it. Turned out that my waterpump was totally burned up (impellors were MISSING) and replacement fixed it. No more overheating, temp needle sits just a hair below midpoint at all times.
Either get a mechanic to check the car out, stick a thermometer in the radiator to see how hot the engine is, or allocate $100 to replace the waterpump yourself, not a hard task. Careful, though, might be a radiator too, which will be $200 online if you want to replace yourself. If it is the instrument panel (guages) you can get one from a boneyard pretty cheap.
I would use these two issues to beat the dealer down with, since warning lights are deal killers in cars unless you know what is wrong. Neither are probably serious.
Either way, if the car has been serviced regulary, buy it. 110k is nothing, and you won't regret it. They are great cars.
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