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The 996s are fun cars.
My research found stories of the "engine failure" mostly in the 3.4lt engines (1999 and 2000). I could not confirm any of the stories. Draw your own conclusions on this topic.
The RMS issue is plague of the 996 and Boxsters. My 2003 3.6lt is having the RMS repaired as I type this response. I had a PPI and at the time of inspection no issues were identified.
My suggestion:
1. If you want an older car, 911 or 993, test drive both of them and see if this is what you really desire.
2. Whatever vehicle you purchase, have an independent mechanic inspect the vehicle. Take the time up front, it can save you a ton of money on the backside.
3. See the vehicle personally. I have heard of many distant purchases go without issue but....buyer beware.
4. The older cars are a lot of fun to drive but remember the 993s and 911s are starting to show their age.
I have owned a 1972 911T and a 1983 911SC, great cars, but I still prefer the 996 for overall...fast and everything works.
Good luck in your search.
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If it has a skirt or tires, it WILL cost you money!
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