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Ultra-Rare Mercedes 500 TE AMG Wagon Is One of Their First Smash Hits, Now for Sale

Ultra-Rare Mercedes 500 TE AMG Wagon 37 photos
Photo: Bonhams Auctions (edited by autoevolution)
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You think AMG, and you think of modern German battlecruisers with roaring V8s, all-wheel-drive traction for days, and enough tech under the hood to slay supercars, muscle cars, and anything in between without even trying. At least, that's the image Mercedes-Benz's performance partner holds today. Back in the late 70s, AMGs ambitions were a bit more humble in origin. Just to make a bulletproof German estate car as fun to drive as possible.
This is the origin of the Mercedes-Benz 500 TE AMG five-door estate you see here before us. Over 40 years after it left its factory in Stuttgart, Germany, this one's made its way stateside to a place it was likely never intended to see. If not for the funky alloy wheels, you could almost never tell this is anything other than a W123-Series Mercedes-Benz Estate. But hailing from the time before AMG was a subsidiary of Merc and could float between companies if they chose, this wagon proved what we know by heart now. That being AMG and Mercedes are like bread and butter.

With a burly 5.2-liter M117-series V8 under the hood and a reported 300 horsepower to play with, this was a remarkably powerful car by late 90s standards. Remember, American manufacturers drunk off the excess of the '60s, took decades to adjust to emerging emissions and fuel economy standards, and suffered enormous hp losses across the board all the while. But over in Germany, AMG proved you could still make big power in the age of climate consciousness and MPG warriors.

Not to say this AMG wagon is exactly eco-friendly, but it actually might be compared to the equivelant Cadillac or Lincoln of the period. Side note, it is enormously entertaining seeing an old-fashioned air cleaner atop the the engine with an AMG badge slapped on top. If you're only familiar with AMG vehicles made during the 21st century, that might come as quite a shock to you. With a clearly lowered suspension and disk brakes all around, this is the kind of wagon that makes mince meat of hairpin corners while hauling a load of groceries in the rear cargo hold.

Add on a stunning Cardinal Red leather interior with wood grain trim pieces that at least attempt to look real even if we're not sure if it is, and this is one phenomenal place to spend a family road trip, a track day, or even just running errands around town. In a modern day where everyone drives crossovers, you will at least look unique in the average American traffic jam, as if this classic AMG needs any help looking special. It's just a side effect of cringe-worthy modern trends in daily driver sources.
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