I'll second Larry's point - there's no degredation in quality. The newer car is certainly the equal of the older car. It may have somewhat different strong and weak points, but it's definately not lower quality.

Ignoring price, the newer car is far superior. It has more safety equipment, a more powerful engine, better fuel economy, more interior room, and a larger trunk. It has a very powerful air conditioner. It is superior in almost every objective measure.

That said, the older car is no slouch. The 124 chassis sedans have attracted much praise over the years. Consumer reports repeatedly stated that a 124 was the best car they ever tested. (Hmmm, I'm not sure I consider that a compliment, considering the source...)

Beneath the skin these two cars are actually rather alike. They both have the same engine, though turbocharged in the '98 model. They have the same rear suspension. The newer model may look completely different than the older, but MB tends to evolve their cars and keep the parts which work.

So if the price difference is not an issue, the newer car is the way to go. It's probably still under factory warranty.

On pricing, the '95 seems a bit expensive. It's low milage, but even so I'd expect it to be at or below $20K. On the other hand, the '98 is underpriced. I've never seen these below $30K unless the milage is very high or the car has been wrecked.

- Jim