We've had our W210 wagon for 11 months now, and have put about 20,000kms on it since buying it. It now has 135,000 kms. I'm knocking on wood as I say this, but we haven't had any major problems with it since buying it. I do know from the records that the transfer case was replaced under warranty quite some time ago, and so was the MAS. The only problems we've had are headlights. These cars chew through headlights for some reason.

I would advise you to stick to a 2000 or newer model. Most of the kinks were worked out by the "facelift" that took place that year. But more important are the added safety features that came with the facelift, including side and head curtain airbags as well as a redesign for crash protection that made the passenger area much safer. I've seen the crash footage videos and the difference between a 1996-99 and 2000-02 W210 is pretty big.

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Jonathan

2011 Mazda2
2000 E320 4Matic Wagon
1994 C280 (retired)