Yup, aluminum head. The 1986-1995 E-class are the 124 chassis, which is light years ahead of the older 123 chassis (1977-1985) with the iron head. The older cars are cheaper and almost indestructible, but are pretty old technology. The 124 is sooooo much nicer - much more quiet, faster, more power, better MPG, *much* better handling & braking, ABS, airbag, the list goes on. But some people are prejudiced against the aluminum head, to each his own... personally I dislike the 123 and really, really like the 124!