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Check for excessively hard rear suspension, it has hydraulic suspension back there, and the accumlators go flat. This results in VERY hard ride, with eventual failure of the struts ($$$$$ -- about $650 each last time I looked). And easy fix so long as there is nothing leaking. Sagging rear could be just a leak, but is more likely struts beaten to death by dead accumulators.
Engine is OK, but not as nice as the earlier ones (it has variable valve timing, I believe). No major problems.
Make sure the AC works, as this model is known for leaking evaporators and they are a major pain to change -- I know, I've done one. About $2000 at the dealer.
Should be "young" enough not to have suspension rubber problems, but listen for excessive thumping or squeaks from the rear suspension -- this means new thrust and torque links. Again, not a bad repair, but detract from the car's value. Check strut mounts up front for cracks, replace if you find any.
It probably starts in 2nd, my 88 TE does. Only downshifts to first if you floor it. Rough shifts are very likely vacuum leaks.
Check for outer edge tire wear -- it will eventually need tie rods and a drag link, and this will show up as toe in wear on the front tires.
Cranky sunroof means new lift angles (around $500 with labor).
Otherwise, just the normal PPI stuff. The W124 chassis is one of MB better ones, pretty trouble free.
Peter
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1972 220D ?? miles
1988 300E 200,012
1987 300D Turbo killed 9/25/07, 275,000 miles
1985 Volvo 740 GLE Turobodiesel 218,000
1972 280 SE 4.5 165, 000 - It runs!
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