Hi Shane,
98/99 and maybe some 2000 diesels were the TD L series - 2 litre, electronic, single OHC but does have a 4 valve head, about 72 kw - nice engine. The TD4 is its replacement and is BMW engine - again 2 litre, electronic, double OHC, 4 valve head and common rail - about 84kw and very nice engine. The TDi is a discovery engine.
Most AWD softroaders have a slightly different diff ratio between the front and rear diffs. In 98/99 model Freelanders the diff which is in the IRD has an excessive difference in the diff ratios - this means that the viscous coupling has to work harder to account for this difference and over time may fail - it locks up causing transmssion windup. This may show up as excessive tyre wear, load on the engine when reversing on steering lock and then ultimately with failure of the IRD and/or rear diff. The problem seems to show up mainly over 100,000Km
The problem was fixed from 2000MY vehicles on. $15,500 seems about right but depends on KM - you can get high mileage to about $12,000 and low milages up to $18-20000.
If you do get a 98/99 model I would be checking the viscous coupling every 5,000 km and at the first sign of a problem changing it - both the IRD and viscous couplings are hellishly expensive from L/R but the Viscous Coupling can be sourced much cheaper elsewhere. New IRD's are no cheaper aftermarket - used prices for both are reasonable. If you buy a high milage model there is a chance these pasts have already failed and later replacements fitted.
However the 98/99 diesel is a great vehicle to drive - try to get an XEDI rather than the DI - it has alloy wheels, Hill descent and traction contol.
Hope this helps
Gazz


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