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The ground clearance on the 300TE-4matic should be roughly the same of your W124s sedans. (+/- 0.5 inch at the most).
Now, if your dad is tired of clutch/transmission problems with his Outback, get him ready to enter the nightmare world of the 4matic system.
Do a search on the Tech Help section on the 4matic system, it will help you to put in perspective what is really a very complicated, unrealiable and extremely expensive to repair 4-wheel drive system that was subsequently discontinued due to all the aformentioned reasons.
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A. Rosich
CL 500, 1998 
S 500 L, 1998 
E 320 T, 1995  [Sadly sold  ]
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