The 2006 Mercedes-Benz E500 wagon was equipped with the automaker's 4Matic all-wheel-drive system, which provided improved handling, stability, and traction in all types of driving conditions. In addition, the wagon came with third-row seating that folded down to provide additional cargo space.
Power for the wagon was provided by a 5.0-liter V8 engine that produced 302 horsepower. The engine was linked to an efficient seven-speed automatic transmission with the Touch Shift feature, which enabled the driver to upshift and downshift manually by nudging the shift lever left or right.
Mercedes dropped a wide range of luxury features and high-tech mechanical systems into the E500 wagon, including a self-leveling system, anti-lock brakes, traction control, 17-inch wheels, and an Electronic Stability Programming (ESP) anti-skid system. It also came with the automaker's TeleAid emergency communication and assistance program.
Other standard features included leather seats with power adjustment in the front, wood interior trim, a leather-trimmed steering wheel, multi-zone automatic climate control, dual front and side airbags, power windows, power exterior mirrors, cruise control, and an AM/FM audio system with a CD player.
A DVD-based navigation system was among the options. Other options included Dynamic Drive seats that adjusted automatically to support the driver under heavy cornering, a twin sunroof with power sunshades, and a smart cruise control system that automatically adjusted the vehicle's speed to maintain a set distance from the car it followed.
The E500 wagon generally received positive marks for 2006, with its smooth ride, quick acceleration, responsive handling, and numerous creature comforts cited as positive features by drivers. Some even noted they were pleased with the car's gas mileage.