When I purchased my '88 300CE in FL in 2001, a PPI revealed an external oil leak at the rear of the head. (The seller & I split the INDY cost). At the time the car had 41,000 miles on the odo. Last year, 90,000 miles later, my dealer tells me the head gasket is leaking again. My indy friend says, pffft, nothing to worry about. Same location, however, as the first leak.

James Dean is correct about the design/manufacturing flaw on the original gasket on the M103.

To Richard28, how is the oil consumption? The valve stem seals are another "gonna go sometime" job. You will know by the increased consumpton. Mine got to burning a qt. halfway between oil changes. Cheap enough to repair though. Changed them at about 75,000 iirc. Been a while though.

Another thing: here is an old thread for 300CE owners. Many of the old timers have move on. Some are still here.Some useful info from CE owners.

300CE/E320 Coupe owners Roll Call!

BTW, your son is driving a pretty safe car.

A former forum member, Texholdem, rolled his in a Texas highway accident some years back. I can't find the thread, but I copied a couple of pics he posted. IIRC, the car rolled over 3 times with his wife and kids in the car. It came to rest on the roof, he opened the door and the famile got out basically uninjured.