Moving a classic Manhattan diner upstate: a quarter of a million bucks. Preserving city history and revitalizing a Catskills town: priceless.

At least that's what representatives from the American Diner Museum and Volvo were saying yesterday, as they chipped Munson's Diner out of its longtime home on 49th St. and 11th Ave. and hauled it to Liberty, N.Y., on a flatbed truck.

"It is a dream come true: Saving a piece of New York history, not only putting it under a bell jar but using it for the same thing it was made for," said Daniel Zilka, director of the American Diner Museum.

The chrome diner has been around since 1945, but closed last year as business dwindled.

Volvo, whose Martin's Manhattan dealership is perched on the corner, bought the plot - diner and all - and agreed to the move instead of demolition.

"It is a losing proposition for us financially," said Tony Chianese, manager of the dealership. "But we just couldn't tear it down."

The diner boasts several claims to fame, including "Law & Order" scenes filmed there.

Jeremy Gorelick, president of Emanon Equities and new owner of the diner, hopes Munson's old-time, gritty West Side charm will rub off on Liberty.

"Some areas of Liberty need sprucing up," Gorelick said. "We want to introduce things that mesh with the Liberty psyche. This diner will bring so much character and history to the area."

In Manhattan, many locals said they miss the eggs and coffee Munson's had to offer. But less sentimental folks viewed the move with a critical eye.

"I just don't get it, man," said one Volvo employee as he walked around the boarded-up diner. "If we have enough money to do this, I should be getting a raise. It's a lot to spend on saving a tin can."