The 240 has a very smooth engine but not too quick.
A C230K is quicker (and drinks about the same) but the engine is a bit rough 'n' ready - I personally like the sound of one of these at full chat but to some people, it's not what Mercs are about.
The C280 however is just as 'good', fuel consumption-wise as a 240, quicker (about the same as the 230K) - if you can find one of these, I would get one in preference to the 240.
However, if speed sisn't your bag or you've found a 240 in excellent condition, go for it. A W202 is a very reliable bit of kit.
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I see from your sig you might be a B*W owner. A W202 C class is going to feel quite different to either an e36 or e30 3-series the sport suspension in a Merc is softer than M-Tech suspesnion (as fitted to e36 coupes) - it's nearer to "standard" suspension in B*Ws.
As has been said, the 240 is a lovely sweet cruiser. I'd also agree, its probably the worst compromise in the engine range. Near the 280 in economy and the 200 (slower than the 230k) in performance. If you really want a V6 then go for it - theres no more refined an engine, otherwise the 230k is the one to go for if you want performance and the 200 if you're after better economy.
As has also been said, no reason not to buy one though - if you find a really nice example.
I found they tended to eat plug leads so check idle is really smooth and there are no jumps or judders. Maintenance wise, new plugs (12) at 60k are pricey so see its been done. If its an auto - ensure gearbox oil and filters have been done and if its a manual - walk away.
I'm surprised nobody has mentioned the dreaded 'R' word - rust! Check around the wheelarches, bottoms of the doors and around the seals on the doorframes. Also, the wiper motor can destroy itself if the linkage has not been lubricated. A genuine replacement motor will be around £200 if it is problematic. Check that the auto gear changes are nice and smooth. If not, the ATF will need to be changed hopefully before any damage will have been caused to the gearbox. Also, check for knocks from the front suspension. These cars can get thru anti-roll bar links and balljoints!
I have been to have alook/drive, Had a good look round for rust and couldnt find any.
Engine and autobox are smooth.
Its got fmbsh.
I am picking it up tomorrow and will be getting rid of my 2 bmw's.
I will post some pic's up of it soon.
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