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Newer is better with Mercedes, as it isn't like other companies just fluffing up the same old car with cosmetic changes.
If you care at all about telematics, i.e. navigation and telephone and SAT radio, you'll be frustrated by any E-class older than 2005, as this field is moving very quickly.
I second the notion, too, that if you don't need 4Matic, don't get it. It's reliable and all that, but it's extra weight to carry around, affecting fuel economy. If you need it, it's a worthwhile price to pay, but otherwise ... .
W211 are nicely reliable by 2005.
Keep in mind also, that "emissions-related" equipment is by law warranted for 8-years/80K miles. Always, then, inspect catalytic converters on any used car being considered.
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Kent Christensen
Albuquerque
'07 GL320CDI, '10 CL550. '01 Porsche Boxster
Two BMW motorcycles
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