Max:

It sounds like you bought an ex-dealer service wagon (white with blue tex). The '87 being the only diesel in that body, most dealers bought it right away, and kept it longer than usual.

There were service-bulletins regarding head gaskets and head cracking on the 602 and 603 engines, so it is likely that your car suffered a failure during its service years, and got a new head and anything else it needed.

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Gone to the dark side

- Jeff