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Even if it's not a diesel, our 1990 300TE has been superb. We've had my mechanic diagnose what needs to be done and have a list of it, but they're not critical to the operation of the car. I guess that also requires some good maintenance by the previous owner, which I got copies of from his mechanic. We use the wagon for long trips, hauling stuff around, as the babymobile (my nephew), etc. since it has the larger space for the stroller, etc.
My only gripe about it is its thirst for fuel compared to the diesel. I've gotten 26MPG last time on my trips, while the wagon made 22MPG, surprisingly. Both with the use of A/C and on similar routes, and just by myself. I'm certain the diesel w124 should get comparably higher than mine since it has a newer engine and is more efficient. The ergonomics scores higher than my W123 as well, but the W123 has such a character that the W124 lacks. Just me though I guess...
To answer your question, yes the W124 is practical provided the necessary items have been gone over and of course, finding the right one also helps.
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