Starter failed within 3 weeks of driving through deep puddles after heavy rains. Replaced 3 starters during my period of ownership.
Alternators failed 4 times and required replacement.
Air conditioner compressors failed 4 times and required replacement.
Water pump failed 2 times and required replacement.
Accessory drive belt tensioner failed 3 times and required replacement.
Transmission overhaul at 205,000 miles.
Air conditioner evaporator failed 2 times and required replacement.
Plastic (visor mounts) and metal (vents) pieces repeatedly cracked and broke, or failed.
Electric antenna failed repeatedly.
This 6 cylinder turbo diesel powered vehicle is an interesting piece of engineering. It accelerates from 0-60 mph in 8.5 seconds (@ MSL (mean sea level) air pressure, 90 degrees Fahrenheit temperature, 90-100% humidity), cruises comfortably at 70 mph turning under 2500 rpm and feels solid at 90-100 mph. It handles smartly with negligible understeer and little throttle induced oversteer.
It returns on average 24-26 miles per gallon in mixed slow traffic and highway driving, with a high of 31 mpg on long steady state cruising, all for a motor vehicle weighing around 2 tons.
Spirited driving and cornering at 65 mph in driving rain has never resulted any hydroplanning.
The engine seems bullet proof, and retains all of its factory design compression, perhaps in part attributed to regular oil and filter changes each 3,000 miles using synthetic oil.
The 4 spd automotic transmission shifts crisply and has never failed, except once when it required an overhaul.
The electrics (alternator/starter) and A/C compressor are somewhat marginal, requiring predictable replacement every 2-3 years or 20000-30000 miles. The radio and electric seats are within acceptable limits. It feels solid like a locomotive yet nimble.
My experience with a '87 300E is that anything on them electrical related pretty much stinks. If it's electrically operated, it will fail... soon and often! Besides the long lasting engines and good build quality, these cars are quite unexceptional from a reliability stand-point. Go with a cheaper, safer, more economical, and more durable Volvo. I've had much better experience with mine.
I have a 1987 300D Turbo and the service records. I replaced the original alternator and starter were at about 225,000 miles. These parts are easy replacements compared to most American cars. None of the front end parts need to be removed if the wheels are pointed properly.
I replaced them with OEM remanufactured parts which carried a lifetime warranty.
If you purchase one of these cars, consider joining one of the email lists - MBZ.org or Mercedesshop.com you will gain a lot of insight as to how to make common repairs and save money on parts and labor.