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joegolden, we bought our 1998 E320 new. Despite it being garage-kept and washed/waxed regularly it has developed rust spots on each front fender, just above the front bumper. There is also a rust spot below the grille. There must be a generic problem with the rust inhibitor process with this vintage E-Class vehicle, perhaps related to the water-borne paint process that was new to MB at that time. I know from firsthand experience that the enamel paint on our 1995 E320 is significantly more durable without any rust issues.
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Fred Hoelzle
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