Originally Posted by MajikBenz

After working on several '94 & '95 w124 diesels, these are the things to watch for IMHO:

1. Siezed glow plugs. Be vewwwy careful about this
2. oil leak on right side of head at #1 cylinder
3. coolant leak on right side of head at rear of engine
4. sagging 5 link rear suspension. Particularly wheel carrier bushings
5. Crumbling biodegradable wiring harness insulation. Not as critical as on the gassers but still a concern

Pretty much the must check list. Check to see if the timing chain has been replaced if it's over 150k. If these issues are good, they are a sweet car with just regular maintenance.