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I have been looking at this a bit myself.
It appears that the release of the 06 model year marked a dramatic uptick in their quality ratings. It appears they got their electronics sorted for the 06 model year. I would be very wary owning a pre 06 without a warranty.
Instead of an 05 E500, perhaps take a look at an 06 E350. I think you would be pleasantly suprised by the power the 3.5 V6 makes.
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