I was looking at 06 E500 4Matic and was surprised that it still has 5 speed! - When did they start to use 7 speed in 4matics? That is strange since my wife's 06 ML500 already has 7... I am confused.

Anyhow, that car is in great shape - should I go for the old 5 speed??

go for it, i think the 5 speed is better. Smoother and no bumpy downshift.

To my knowledge, no AWD 211 has the 7 speed because it doesn't fit under the car with the extra AWD hardware. Also there's nothing wrong with the 5 speed's performance/operation.

You mean no E or no AWD at all?

No E 4-matic has a 5-speed. Like Barry said, not enough room. The ML does have 7 because (looking at the size) it has the room. Idk about the S and the new CL550 4-matic, but I figure those have 7 speed.

Agree, I like the 5 better due to the programming when you control the tiptronic feature (can downshift manually 1 by 1 vs 7 speed goes to lowest possible gear depending on speed).

I like having a 7-Speed due to obvious reasons, but the 5-Speed in my S500 was WAY smoother and more refined than the jerky mess in my E350. When it's hiccup free it's perfect, but unfortunately it hiccups too often.

Ya, something about that S/CL 5-speed was soooo smooth. Our 02 CL500 has the 5 speed and never a hiccup. I guess that's what you get when you buy an S/CL over an E/CLK or something.

Looks like you can get the 4Matic W212 with the 7-speed.

I used to have 2004 E500 and it was 7 speed. I guess its because 4Matic.
All the V8 W211 are 7 speed except E55 and 4Matic.