We’ve all seen those tempting listings: German luxury cars, once symbols of prestige and performance, now available for a fraction of their original price as they hit the 10 to 15-year mark with high mileage. For those in the know, particularly with brands like BMW, models such as the 5 and 7 Series often come to mind. However, the allure of a discounted luxury experience can quickly fade when faced with the reality of deferred maintenance and looming repair bills that often accompany these high-mileage vehicles.
The BMW E39 5 Series sedans are a prime example. The 1997–2003 540i, boasting a potent 282-horsepower 32-valve V-8 engine, represents an accessible entry point into high-speed cruising. Especially in the Sport Package trim with a six-speed manual transmission, it’s an undeniably attractive proposition. Yet, the vast majority of these E39 540i models, lingering on online marketplaces for bargain prices, are likely to require significant investment in cooling system overhauls, front-end component replacements, resolution of oil leaks, and the dreaded timing chain guide issues – potentially the most costly repair of all.
Having previously explored the appeal of BMW wagons, specifically the E39 5 Series, I have a personal appreciation for their blend of practicality, driving dynamics, and aesthetic design. My past experience includes a 1999 E39 528iT Sport Wagon, which seemed ideal on paper with its rear-wheel drive, five-speed manual gearbox, and sport-tuned suspension. While it excelled in driving enjoyment and cargo hauling, its reliability proved to be a constant drain on resources. Subsequently, a 2001 325xiT Sport Wagon offered more financial stability, but the all-wheel-drive system compromised steering feel. This led me back to a rear-wheel-drive setup with a six-cylinder E39 530i sedan, a model that, while not as powerful as the 540i, thankfully avoids the notorious timing chain guide problems.
Driven by curiosity and a desire to broaden my automotive horizons beyond BMW, I turned my attention to Mercedes wagons on Craigslist. An advertisement for a 2006 Mercedes E500 wagon immediately caught my eye. The listing detailed a high-mileage example (189,000 miles) equipped with an automatic transmission, AIRMATIC suspension (with recent rear air spring, shock, and pump replacements), four-zone climate control, sunroof, heated and cooled leather seats, a third-row jump seat, a 5.0-liter V-8 engine, 4Matic all-wheel drive, CD and navigation systems, and various convenience features. The seller emphasized the absence of rust or accidents and highlighted recent maintenance, including Service B, transmission and differential services, new filters, belts, hoses, and coolant. Despite needing “some minor work,” it was presented as “the cheapest running E500 wagon on Craigslist,” making it an intriguing prospect for a winter vehicle or a safe first car.
The accompanying photos depicted a white wagon in good overall condition, featuring an inviting beige interior with elegant burled walnut trim. Although my personal preference leans towards BMW, my interest was piqued enough to warrant an in-person inspection. My aim was to investigate what one might encounter when examining a 13-year-old, high-performance Mercedes wagon, originally priced around $65,000, now offered at less than five percent of its initial value. I contacted the seller, Peter McParland, being transparent about my journalistic intentions and unlikelihood of purchasing the car, but offered to compensate him for his time and travel expenses. To his credit, he readily agreed.
Capitalizing on my active Facebook community, I shared the Craigslist ad and announced my “research” trip to inspect the Mercedes E500 wagon. The response was considerable, with many followers encouraging me to buy it purely for the entertainment value. The presence of a third-row seat sparked particular interest. Humorously, I considered using the third seat as justification to my wife for a potential purchase, suggesting it would be ideal for future grandchildren (despite not yet having any).
Beyond the playful encouragement, valuable advice emerged from knowledgeable friends. Several individuals echoed the expectation of similar maintenance needs to the BMW E39s I was familiar with. John Robison of JE Robison Service, a respected European car repair shop, specifically cautioned about the 10,000-mile oil service interval potentially leading to premature wear of the cam gears in these Mercedes V8 engines.
Equipped with this background and a sense of curiosity, I journeyed to Shrewsbury, Massachusetts, to examine the aging Mercedes E500 wagon. Peter McParland, the seller and owner of a race preparation shop, shared that he had owned the wagon for approximately four years. Our conversation touched upon the typical ownership experiences with high-mileage, specialized German cars equipped with air suspension. Peter confirmed that AIRMATIC system leaks were indeed a prevalent issue for the E500, consistent with reports on RepairPal.com. He recounted a personal anecdote of the rear air suspension failing while traveling, necessitating an impromptu roadside repair to replace the pump, air bags, and shocks to make the car drivable again. This underscored the importance of the “recent AIRMATIC repairs” mentioned in the ad.
Playing devil’s advocate, I challenged Peter’s claim of having the “cheapest running E500 wagon on Craigslist,” informing him of a slightly cheaper 2004 model in Washington D.C. with a transmission issue. He laughed, acknowledging the playful challenge, especially when I mentioned that search tools confirmed his wagon was indeed the second cheapest running E500 wagon available.
My initial walk-around revealed a visually appealing wagon. Closer inspection uncovered minor cosmetic flaws, including cracks in the bumpers and air dam, and a damaged rear taillight. However, these seemed insignificant considering the overall condition and asking price.
The Mercedes E500 wagon presented itself in a visually appealing manner, suggesting a well-maintained vehicle despite its age and mileage.
Minor cracks in the bumper and air dam were observed upon closer inspection of the Mercedes E500, but deemed to be expected wear and tear for a vehicle of its age.
Stepping inside, the interior was even more impressive than the online photos suggested. While traditionally favoring the starkness of black BMW interiors, the warm beige and wood trim of the E500 cabin exuded a sense of tranquility. The burled walnut trim, often not my preference, was tastefully integrated into the beige dashboard and door panels, creating a cohesive and inviting atmosphere. Apart from some stains in the cargo area, typical for a utility-focused wagon with a light-colored interior, the cabin was remarkably well-preserved.
The Mercedes E500 wagon’s beige interior, complemented by burled walnut trim, created an ambiance of serene luxury and comfort.
Mercedes-Benz’s signature seat control design, shaped like miniature seats on the door panel, has always been a distinctive and appealing feature.
The cargo capacity of the E500 wagon was undeniably substantial, dwarfing the BMW wagons I was accustomed to. Compared to the smaller E46 3 Series wagons and even the more generously sized E39 5 Series wagons, the E500 offered significantly more space. The area behind the second-row seats felt cavernous. Upon my arrival, Peter was in the process of unloading his belongings, which included a fully assembled mountain bike, albeit with the rear seats folded down.
The expansive cargo area behind the second row of seats in the Mercedes E500 wagon highlighted its practicality and versatility.
Out of curiosity, I examined the third-row seat. While functional, it was clearly designed for occasional use, lacking the spaciousness of a dedicated SUV third row due to the wagon’s lower roofline and flat floor. It appeared suitable for children or short trips, but not for comfortably accommodating adults on longer journeys. Peter concurred, adding that he had, on occasion, transported friends in the third row after track events, albeit perhaps not in optimal comfort.
The third-row seating in the Mercedes E500 wagon is compact and best suited for smaller passengers or short trips.
Despite being generally impressed with the wagon’s condition relative to its asking price, the subsequent test drive proved to be less inspiring. Despite my attempts to maintain a purely objective “research” mindset, the reality is that inspecting cars often stems from some level of underlying interest. There’s always the potential for an unexpected connection, where a car’s aesthetics and driving experience unexpectedly resonate, leading to a spontaneous purchase.
However, the Mercedes E500 wagon failed to evoke such a reaction. Not even remotely.
While the wagon performed adequately on local roads, minor issues were noticeable. A slight pull to the right and a metallic clunking sound from the front end over bumps were present, along with the ever-present check engine light.
The fundamental issue was that the E500 wagon simply lacked emotional appeal. While acknowledging my personal preference for smaller, lighter, rear-wheel-drive cars with manual transmissions, I was surprised by the complete lack of enthusiasm the E500 generated. It felt large, detached, and sluggish. Even the 302-horsepower 5.0-liter V-8 engine, with its sophisticated 32-valve design and dual spark plugs per cylinder, felt surprisingly uninspiring. While accelerating forcefully did elicit a roar and a downshift from the transmission, this seemed to be its only dynamic highlight. The expected low-end torque from the V8, intended to provide effortless responsiveness in everyday driving, felt absent, resulting in a rather flat driving experience. Beyond maintaining stability at highway speeds, there was little about the driving dynamics that stood out or encouraged engagement. The warm-toned interior was aesthetically pleasing, but otherwise, the car offered no compelling reason to desire ownership.
Despite its impressive specifications, the 5.0-liter V8 engine in the Mercedes E500 wagon failed to deliver an engaging or exciting driving experience.
Out of due diligence, I inquired about the “minor work” mentioned in the advertisement. Peter provided a candid list: cosmetic issues (bumpers, taillight), a check engine light attributed to an intermittent wiring issue with the smog pump (after pump and relay checks), unrepaired front air suspension potentially needing bushings, struts, or ball joints, an alignment requirement, a faulty passenger seat occupancy sensor triggering the SRS warning, bent and cracked wheels, and engine oil consumption of approximately one quart per 1,000 miles.
Considering the $3,200 asking price, these issues appeared to be factored into the valuation. The car was not exhibiting major mechanical failures like excessive oil burning or transmission problems. It was, as advertised, a functional and drivable Mercedes E500 wagon.
For a potential buyer interested in this type of vehicle, the check engine light would be the most significant concern. In states with vehicle inspections, an active CEL prevents passing inspection, and driving with an expired or failed inspection sticker carries legal consequences. Diagnosing and resolving a CEL can range from simple fixes to complex and costly repairs. While Peter suspected a wiring issue with the smog pump, a definitive diagnosis would require a Mercedes-specific diagnostic scan tool and expertise. The uncertainty surrounding the CEL repair introduces a degree of risk for the buyer.
Transparency from the seller, a reasonable price, and a buyer equipped to perform DIY repairs represent the ideal scenario for purchasing a used car like this. While I possess the DIY skills and willingness to tackle such projects, the Mercedes E500 wagon simply didn’t resonate personally. After thanking Peter and compensating him for his time, I left without further consideration of purchasing the car.
Spending time examining an interesting car and engaging with a fellow car enthusiast is far from a wasted effort. It also serves as a valuable exercise in testing one’s preconceived notions and preferences. Serendipitously, the following day, I inspected a 2001 BMW E46 3 Series wagon with a rare rear-wheel-drive and five-speed manual configuration. Despite its rust, dents, high mileage (258,000 miles), and numerous dashboard warning lights, the moment I drove it, the connection that was absent in the E500 was immediately apparent.
The experience reinforced the subjective nature of car enthusiasm. I would readily consider purchasing another “depreciated mess,” but the crucial element is the personal connection – the “heartbeat” you feel when driving a car that truly excites you. For me, the Mercedes E500 wagon, despite its merits, simply didn’t spark that vital connection.
