I have a 2000 E430 with 50,000 miles on it. this is my 3rd E, all purchased from the same dealer. No problems with the first 2 cars, but once this car hit 30K things started to go wrong. Nothing really bad, just annoying. Replaced steering rack, left and lower rear control arms, dash cracked around passenger air bag cutout, some rust near trunk cylinder, replaced 3 wheels, replaced 2 motor mounts, and some other stuff. the car also exhibits at 40-50 mph a very slight (intermittent) lunging or hesitation. the dealer has not been able to find anything. I wrote MBUSA and told them of my disappointment with this car. MBUSA never responded, but I copied the owner of my dealer who did. Here's their offer: She contacted MB and got them to offer up an additional 12 month/50,000 warranty at no cost, or she would sell me a new E at cost. My salesman just called to give me the details and mentioned that the MB rep who spoke to the dealer thought it would be smarter to wait a year or so, to get all the bugs out of the new car. Not very comforting. But my dealers offer will not likely be available next year, when I'll be in the same spot i'm in now. Having a car that has been getting very expensive to maintain. Also the pre-owned guy at the dealer has offered me $26,000 for my car. My salesman is trying to get another few bucks out of him. What would you do?

Grab the new E at cost. It's already been out in Europe for half a year so the initial bugs have already been addressed. Probably the reason the rep suggested you wait is that he assumes you are a more difficult customer to please than most based on the history of problems you had reported.

I'd take the 2003 E at cost too.

Adding to my prior post, I'd note that over 100,000 of the new E-Class have already been manufactured. I believe this milestone was hit at the end of August and it set a new record for number of cars from ramp-up in such a short period of time. Also, even if there are a few problems you still have a 4 year 50,000 mile warranty which should be sufficient to cover such. Delay your purchase until after December 31st and you will save on luxury tax too.

I'd definitly go for the new E

I'd go for the new car also. But $26,000 for your car? Were they laughing when they said that? Because that's a joke. If I were you, I would deal with the owner on the price of your trade in also. Because at $26,000 they're just off setting the "cost price" price of the new E by shafting you on your car.

Also, with the all the probems you're having with your car; I would advise you to take a look at your local lemon laws. My friend had less problems with his new 7-series then you're having with you car--and though it was a pain; he got BMW to buy the car back.