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Spendy to fix? Could be as simple as blowing air on a sensor. Or bleeding the traction control hydraulic system. Or filling up your brake fluid reservoir all the way!
You need to read up on these cars before you consider purchasing one. They are extremely reliable but everyone thinks they're expensive time bombs - few have actually owned them! The front differential seldom, if ever, fails (I've never heard of one failing). It's about as likely as a C2 rear open differential failing - ever hear of it happen? The center differential can wear out, and so could the rear differential. If the hydraulic system involved with the traction control fails, you will not lose braking ability - the systems are separated from a hydraulic standpoint. They are combined electronically - so if ABS has a fault, then it as well as PDAS traction control shuts off.
They are fantastic cars, but you need to know what you're doing, or have a mechanic that is familiar with these cars - which is actually quite rare. There is a suprising amount of incorrect information about the C4, and a surprisingly few number of mechanics that can troubleshoot the cars properly - in these cases, it can get very expensive because "troubleshooting" usually involves "parts changing" which is not the right approach.
Good luck with the car, but hook it up to a diagnostic tester and figure out the error. It could be something simple - usually is!
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