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Just traded in my 1973 Series III for a 94 V8 Disco with auto box, but did consider a diesel, just discovered the V8 in a local garage at the right time and at the right price.

From what I learnt whilst looking, the gearbox is the weak point on TDI's be wary if it hasn't been rebuilt/replaced after 70,000 miles. Replacement could cost about a £1000!

No known major problems with autos, the ZF box has a good reputation.

Rot in the inner wings is an issue but easy to detect as well as the usual problems such as rear crossmember, sills and general aluminium/steel corrosion. Check this out for more info:
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