I sold my 1994 E320 wagon in 2001 for a 1999 E320 wagon. I am certainly glad you are considering one of these fine automobiles...it's unfortunate how many people buy a brand new Kia Optima/Hyundai Elantra when they could have bought TWO W210 or W124 Mercedes for the same price!!!

Anyway, six months after purchasing the 1994 wagon, it was involved in a huge accident (see my shopforum gallery). The insurance gave me the option of totaling the car, but I wanted to fix it (Smoke Silver with leather, not MBTex - rare in my opinion). I am still simply awed by the car's performance, handling, and stability at speed. It just felt heavy (in a good way) and held the road...a driver's car. However, the car continually gave me problems after the accident with the ASR control ($2400 invested in trying to fix it), wiring harness ($1200), AC evaporator ($3000), etc. I sold it in 2001 for the 1999 wagon.

The 1999 wagon makes the 1994 feel like a Model A in my opinion. The car is significantly easier and more comfortable to drive. The steering as mentioned earlier has a better on-center feel, and the car absorbs bumps like they are not even there. The M112 V6 is probably the most refined V6 engine made to date...at red lights, new passengers in the car inquire if the engine is on!!! While not as involving to drive as the W124, this car certainly is the epitome of a highway cruiser. Additionally, the 4Matic AWD system has been great in the snow...better than my 5,890 lb. SUV. I will list some of the major problems I have had with the car from time of purchase (40K) until today (105K).
1. Front door switch (interfered with central locking and dome lights)
2. MAF (2X)
3. Oil quality sensor (2X)
4. Bellypan
5. Windshield washer reservoir pump
6. Rear axle center piece front seal leak
7. Harmonic balancer
8. CV joint boots
9. Control arm
10. AC compressor (with two days left on Starmark!)
The Starmark on this vehicle expired about four months ago...most of these repairs were covered by the extended warranty...would highly recommend it.

Hope this helps!