I have not experienced any problems with this fine piece of equipment. Does me right everyday.
I found an amazing deal on the car from the original owner. It had a smoking problem upon startup and she seemed to think that is was a costly fix. I have yet to see a 240D that doesn't blow a little smoke so I went for it. Turned out to be a smart move. I have put 10,000 miles on the car with no problems. I'm currently planning to take the car on a 9,000 mile trip around Canada and the United States. Wish me luck!
If you don't mind excessive consumption of oil (1 quart per 100mi) and 65 horse power then this car is for you.
9000mi/100=90 quarts!
The beast also loves bio diesel. I Regularly run b100 in it.
With that sort of oil consumption I would say you have a problem, perhaps with the valve stem seals.
Sounds like the engine is a bit of a blowing duck, run it till it loses compression then rebuild.
The engine is worn, but don't cry, it will probably last another 50,000 miles. Just treat it good and use 20/50 oil, and you will be OK. Rebuild the engine and the car will last forever!