Having just recently gone through this with a 2001 SE7, here a few points that may help. Owning an old Land Rover is somewhat like having a baby: periods of sheer joy intermingled with lots of crying, screaming and cleaning up crap!
- Get a code scanner and scan for engine codes. Don't bother with a LR specific scanner, all that really gives you is the ABS codes (and you will 99% have the 3 Amigos issue). Vacuum leaks are common, I had to replace the "valley" gasket (intake manifold).
- Cooling system issues is the biggest problem on these vehicles. Check if the hoses & thermostat are original. Even if they aren't, plan to replace EVERY hose and install a 180 degree thermostat. Cooling system flush isn't a bad idea either. Get rid of the evil DexCool coolant and use something like Peak Global. If you can get hold of a OBD temperature gauge (or a code reader with live data display) hook it up and drive with it. DO NOT RELY on the LR temp gauge, it is completely useless. You should not be seeing temperatures approaching 220 degrees. Mine varies between 180-196 degrees during normal city driving.
- If you have air suspension (not sure if the SE has like the SE7), the bags will leak at some point. Plan on replacing air bags or the air suspension with coils.
- If the front drive shaft universal joints have not been replaced with greasable universals, plan on replacing the drive shaft or upgrading the universals ASAP before your drive shaft self-destructs.
- Service records are helpful. Ask if the head gaskets have been replaced.
- Check for sunroof leaks.
- Check that all power door locks & sunroofs open & close.
Here are a few more tips I got somewhere on the web:
Before you start the engine:
Take off the oil cap & look at it. is there any moisture on it? While you have that off, put your nose up to the filler tube & take a whiff, does it smell like coolant or exhaust? Check the dipstick, does it look creamy or like chocolate milk? It shouldn't! Look at the head gasket, is there signs of oil leaks along the bottom of the cylinder head? Look for evidence of coolant leaks. if you find some look for the source, if it's not coming from a hose, then it may be coming from the bad head gasket. Look at the coolant reservoir, is it empty? It may just be low, but it may be low because the owner can't keep it full as the coolant leaks from the head gasket. Leave the coolant cap off & start the engine.
After you start the engine:
Pay constant attention to how the engine runs. If it sounds like it's mis-firing, that's a good (bad) sign that the HG is blown. after the engine warms up a little, go back to the coolant tank & look in the filler hole. There is a small return hose that empties into the tank at the neck of the tank. Grab the accelerator bowden cable & rev the engine slightly & hold it steady. Coolant should start streaming out of that hose inlet, watch the stream for interruptions. This hose is how the cooling system bleeds air from the system. If the stream is constantly interrupted, that may be exhaust entering the system through the HG. Put the cap back on. Walk around, the vehicle looking and SMELLING for active coolant leaks, that weren't there with the engine running. When you get to the exhaust pipe, look for evidence of coolant blowing out the pipe. Some moisture is normal, but it shouldn't be slick, or smell like coolant. place your hand a few inches away from the pipe & let the exhaust blow on it a bit, You are looking for coolant or chunks of debris blowing out the tail pipe. finish walking around to the hood constantly looking & smelling for coolant. when you get to the engine bay, smell for exhaust too, & check the block for leaks again & close the hood. If you are satisfied, go drive it.
On the drive:
Again, pay close attention for any kind of misfiring at every stage of the test drive! Take it to a freeway ramp & floor it. How does it accelerate? These aren't race cars, but it should pick up reasonably well, if it doesn't it's a problem. once at cruising speed, pass someone by speeding up. Does it want to go faster, or is it not cooperating? Turn on the heat to a high temp, it should get warm if it doesn't then thats a sign that there is more air in the system, possibly from a bad HG.
After you get back:
Leave the Disco running, & do the engine running walk around again, BUT DO NOT TOUCH THE COOLANT CAP!!! You are looking & smelling at & for the same things as before.
If you get through this & you still aren't sure, take it to a mechanic & have it inspected. $100 now could save you thousands later!
More links:
Land Rover D II buyers guide by one of your friendly neighborhood Land Rover nuts.
Buyer’s Guide: Purchasing a Discovery II