I am revisiting this problem after my mechanic told me to have a body shop take a look. He also asked the same question that lino did -- "Was it ever painted?"

How would painting be relevant? Could a paint/body shop have removed and reinstalled the hood incorrectly? (FYI: It was not painted or ever worked on before.)

Could the previous owner have had work done and an improper hood/hinge was installed?

Instead of removing the fender, could the fender liner be removed? That ould be something I could probably tackle.

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2008 E350 4matic / Black/Anthracite

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Gone but not Forgotten:
2001 E430 4matic, 206,xxx miles, Black/Charcoal
1995 E320, 252,xxx miles, Black/Grey
1989 260E, 223,00 miles, Black/Black