They're fine as a daily driver and as reliable as any car that's looked after. Only drawback to older stuff IMO is higher fuel costs which is obviously mileage dependant and offset by lower running costs elsewhere i.e. usually simpler/cheaper to service/repair than modern stuff.
Mines let me down (without stranding me) twice in 8 years, both times a dead alternator- the first died the day i bought it and after getting it rebuilt it popped again this summer. Don't keep a proper track of running costs but i doubt i've spent more than £300ish a year in maintanence most of which has been parts... one big/spendy job dropping the rear subframe to replace all the fuel/brake/SLS lines and various smaller ones like new waterpump, rad, some front suspension bits, exhaust etc. That's on a 217k example that cost ~ £1k
I only do ~ 5k miles/year and a 320te has been my daily since 2008... paid someone to do the waterpump as it's a fiddly one on the m104 and had paid help for the subframe as it's soooo much easier with a proper car lift but no more difficult or expensive to run than any other old car i've ran as a daily
Overall condition is everything when buying, plenty of guides scattered about the internet listing the common weak points many of them rehashings of one written by Nick Froome (Bolide on the forum and the guy behind w124 dot co dot uk, can't post a link as the forum censors it due to illegal advertising/not sponsoring the forum or something along those lines
). Somewhere on his site you'll find fuel consumption figures and the 25mpg all round / 31mpg best case scenario for an e320 is bang on IME but to get low 30s need to be sensible on m/ways and avoid ragging it out of roundabouts. They're brutal on fuel in heavy stop/start traffic or if you 'properly' explore the upper rpm regularly
Front wings are cosmetic, they very good at hiding the more serious rust... sills, jacking points, inner front wings, forward rear subframe mounts and on estates the rear side windows and fuel tank
320s (and the 300-24) have non replaceable ball joints in the lower track control arms so what's a cheap job on the smaller engined examples is 'kin spendy as genuine LCAs are ~ £400ea give or take (sport chassis are more ££). All Mbs from '93 (when the later multivalve engines appeared) to '95ish came with comedy biodegradable wiring looms and the engine harnesses rot from the heat. New ones are 'kin spendy but they can be repaired/rebuilt for much less. The origional h/gasket had a couple of weak spots but most will have been replaced by now
Personally i'm beginning to think that, some at least, genuine parts are getting crappier as well as more expensive... MOT'd mine on Sat morning and it needs new exhaust rubbers again, i've fitted cheap pattern ones, more expensive pattern ones and genuine examples and they all rot stupidly quickly. It's not 'cause their strained as most of the exhaust is genuine and the eberspacher back box fits as perfectly as the rest of the system. Same deal with various other genuine rubber bits i've fitted. On the plus side the origional cat is still working well
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