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I bought a '96 E300D new in April '96. I put about 70,000 miles on it before selling it. It was a very nice car. Handling is good, power is not bad, many people rode in the car and were surprised when they found out that it was a diesel.
The main thing when buying used, of course, is condition. I would recommend taking it to a shop for thorough evaluation.
Good luck,
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