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Aquaticedge, 4 years ago bought a 1995 E320 (with 130,000 miles) and have put over 40,000 trouble-free miles on it. They are wonderful cars if serviced regularly by-the-book. Transmission fluid should be changed every 30,000 miles ... same for spark plugs and air filter. Oil changes are every 7,500 miles per the Service Manual. I would avoid buying any car with rust issues because it will only get worse, and is expensive to repair correctly. No doubt you're familiar with the rear SLS.
The 1995 124 cars have the lower revving M104 engine which is a marked improvement over the early M104 engine. While a 1995 E320 sedan accelerates well and is a joy to drive, a wagon may accelerate somewhat slower due to the added weight.
Check the instrument panel for an ASR light on the far right. If there is no warning light then that wagon doesn't have ASR (Automatic Slip Resistance or positraction). There should also be a metal tag on the differential for an ASR-equipped car which requires special MB differential fluid. I own 2 MB automobiles with ASR and have never had any problems with it, but I've read posts advising against buying a 124 car with ASR. You will need to judge for yourself.
As with any used MB automobile best to have a PPI (pre-purchase inspection) performed by a MB-trained tech who knows that vintage MB vehicle and its quirks.
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Fred Hoelzle
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