I purchased a 1995 E320 wagon 2 years ago with 170K miles from the 3rd owner for $1500. It was in very good cosmetic condition and I knew that the transmission was bad, a/c didn't work, and accumulators needed replacing in rear SLS. The only records with the car were detailed oil changes and record of being a StarMark car when the second owner purchased it.

I consider myself an advanced DIY'r and figured that I would replace the transmission with one from a salvage yard and then work on the other issues. I ended up rebuilding the transmission myself (my first automatic teardown), replaced the a/c evaporator (probably more work than the transmission rebuild), and replacing the accumulators. This was done in the first 3 months and since then I have only done minor more routine repairs such as front struts, ignition lock, 2 window regulators, oil pressure sending unit, rear control arm to hub bushings and rear wheel bearings.

I have driven it over 30K miles and it is a pleasure to drive and puts a smile on my face every time I get in it. It has become my favorite car of all that I have owned. My second favorite is 1996 Volvo 850 with 5 speed. The 6 Saabs that I have owned can't come close (although I would like to have another Saab 96 to restore for fun).

I just completed a 3000 mile trip to New England and would not hesitate to take this car anywhere.

Is it any better than the earlier 124's?? I may never know because from my experience I would stick with the 94 or 95's. My biggest complaint is that the transmission does not have a lock up torque converter. The motor is smooth as silk and amazingly peppy.