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If you do go for an N47 engine, aim for about mid 2009 or newer; IIRC the crankshafts that had issues were phased out in January 2009. Engines newer than that still get chain issues, but you're much less likely to need to replace the crankshaft on the later ones.
My partner used to have a 59 reg 118d, which sounded like someone was lightly shaking a maraca at about 1800rpm. Really subtle noise. Took it to a dealer and they said 'keep an eye on it for the next year or so', so plainly weren't too concerned. 6 months later I caved and did the job myself. Not fun, but cost me about £600 including buying an engine crane and using all the latest genuine parts. No more noise after that. The parts I took out were barely visibly worn.
As others have said, go 6cyl for reliability, refinement and more power. That 118d did 60mpg on a run. My e91 330d (M57) does 45-47mpg on a run. I had the option to keep either car when we sold the 118d, and chose to keep my 330. My dad has the 118 now, and it still runs spot on.
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