Trouble spotting- what to look for in buying a Gen3

[Mrknowitall]

Ok- Looks like its finally time to hunt down a good value on a Gen3. I'm looking at the value end of the spectrum, and could use some advice on what specific items to look at. What are major red flags? Minor mechanical work is not an issue, but obviously I'm hoping to avoid having to replace "everything". So here's what I'm looking at- 2001-2003, both XLS and Limited. I know about the mechanical differences. I'm finding a few for for sale needing motors, so that makes me think there are a few serious matters under the hood. So, what's the scoop?

 

[4D55 Performance]

Get the 2003, it has the larger 3.8 liter engine 5 speed auto trans and Super Select 4wd. The Super Select models will have 2hi, AWD, 4hi and 4lo.

 

[DSouth]

I've been looking for a decent 3rd gen for 5-6 months. I've only seen one where it was documented that the engine was replaced. Someone must have forgotten to change the timing belt and had it snap on them. Otherwise, these are stout engines. I just look for signs of good maintenance, if there aren't any records. Oh, and check all 4x4 modes. In 50% of the cars I've checked they weren't fully functionally. Which usually means it was never used, and that some solenoids are stuck.

 

[vectorsc]

The last few G3's I've looked at have been BAD bad bad. A good one should be smooth and everything work. Engine troubles are more common in a bad example than I would like. It shouldn't knock and oil pressure should be excellent. Road handling should be very very good for an SUV.

Use a code reader as well - they make bluetooth ones if you have an android phone.