I've got a '94 Wagon and I put Hakkapeliitta snow tires on it and have not had a problem in any snow conditions. The only vehicle doing better than me on snowy roads were large SUVs. There are 4Matic wagons on Starmark out there as well as rear wheel drive wagons. The second generation 4Matic is pretty good from what I"ve read as far as reliability. I get about 21 mpg in the winter and almost 25 mpg in the summer out of my inline 6 but I've read the V6 gets better mileage. The most talked about failure of these cars is the harmonic balancer. Sounds like you've been doing reading on them too. The wagon has tremendous cargo space. If you get snow tires for it get real ones - not a hybrid like the Dunlop Winter Sports. They can't handle any type of hill - up or down.

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dtf
1994 E320 Wagon (Died @ 308,669 miles)
1995 E300 Diesel (228,000)
1999 E300 Turbodiesel ( died @ 255,000)
2006 Toyota Tundra SR5 AC 4X4 (115,000 miles) rusted frame - sold to chop shop
2011 Audi A4 Avant (165,000 miles) Seized engine - donated to Salvation Army
BMW 330 xi 6 speed manual (175,034 miles)
2014 E350 4Matic Wagon 128,000 miles
2018 Dodge Ram 21,000 miles