bought a used e500 and ...
Head gasket leak is rare. I don't expect a head gasket but what is common is valve cover leaking on pass side needing gaskets.
I would never buy a car with a head gasket leak.
Pull the covers and look for the valve cover oil leak.
Engine/Trans mounts are a common replaxcement on these cars.
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Also you can test your ball joints, they are notorious for making clunking noises. When I changed my Thrust Arm it was actually not the bushing but the ball joint.
Quick reference:
There are main ball joints for the front end suspension. In order from closes to front of car going backwards.
1) End link ball joint:
These rarely go bad, they can cause vibrating at high speed according to what ive read on here... I would also wager lose feeling in steering.
2) Trust Arm ball joint, When these go bad you will have clunks going over bumps, and clunks when applying brakes quickly and firmly. You can ride of them for a while but they will shred the ends of your tires.
3) Control Arm/Lateral Arm ball joint
This is the ball joint in the middle that takes most of the stress of the vehicle. When it goes you will hear clunking but will also hear squeaking/creaking noises if you go over bumps, or even just push down on the front of the car... These are dangerous if you let them ride like this for too long, if this ball joint fails prepare to lose control of your car.
4) Upper Ball Joint
This is the Ball joint you have that connects the Upper Wishbone to the Steering knuckle. You will have thumping sounds and will also be able to grab your wheel and move it around... Replace ASAP, a bad upper ball joint will be VERY bad if it snaps.
If you have a bad ball joint it will reveal itself as slight pulling to one side (whichever side the bad joint is on) when applying light braking.





