I've had a 1994 E320 wagon since 1999. My wife drives the snot out of it every day. Excellent but complex car. The wiring harness and head gasket are just the beginning. However, the only real kisses of death for the old 124 are the air conditioning system and, to a lesser extent, the traction control system.

To answer your question about fuel economy, the real world milage is between 10 and 30 MPG. Yes, the powerful, thoroughbred M104 engine, if you drive it like a race car, especially in an urban environment, will really suck down some fuel. If you baby it, though, it's efficient, getting up to about 30 MPG on the highway. Driven moderately, you could expect about 20 MPG.

They are very safe, solid cars. Think Volvo wagon but better. About as good as you can get from that era. I'm not sure I would turn new drivers loose with that powerful of an engine, though. The braking and handling are exceptional.

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Michael

1988 300 SL (5 Speed)
1994 E320 Wagon
1997 C230