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Land Rover

Discovery 2

L318· 1998-2004 suv-4wd Caution

Top issues

14 known problems · 6 high
high
Cylinder liner slip / block failure
2 of 3 engines
From 150k+ km · ~$3000-8000 (rebuild or replacement block)
high
Oil contamination of the engine wiring loom / ECU
2.5L Td5 turbo-diesel
Any (age-related) · ~$300-1200
high
Head gasket failure from plastic head dowels (pre-2002)
2.5L Td5 turbo-diesel
From 150k+ km · ~$1500-3500

Recalls

1 on record
PRA 2002/5304 2002-04-12
Defect: The wheel speed sensor for the ABS can be deceived by metallic debris in the area, transmitting an incorrect wheel speed signal.
Hazard: Incorrect ABS operation could affect braking performance.
Remedy: Contact your Land Rover dealer for inspection and repair (campaign D263).
Affected: Discovery Series II (V8 and Td5), built 1998-2001
Official notice: www.productsafety.gov.au · details checked 2026-09-30

Check a specific car by VIN at vehiclerecalls.gov.au.

At this odometer

See which of this car's known problems are due at that mileage, which should already have been dealt with, and what's coming up.

Before and after

Before: Discovery 1 (1989-1998)
Price (AUD)
$4k-$18k
Body styles
5-door wagon (5 or 7 seat)
Drivetrain
Full-time 4WD (lockable centre diff, dual-range)
Origin
UK
Built in
United Kingdom (Solihull)

Overview

Sold as S, GS, SE, ES and HSE, the Discovery 2 (Series II) carried over Land Rover's classic full-time dual-range 4WD with live axles, coil springs front, and a self-levelling air spring or coil rear. It is genuinely capable off-road and roomy with the optional third row, but it is the vehicle on this list to buy with the most care: the engineering is charming and the electronics fragile. Australian buyers got the five-cylinder 2.5L Td5 turbo-diesel as the mainstay (the one most people want), the 4.0L Bosch-injected 'Thor' V8 petrol, and after the 2003 facelift a 4.6L V8 petrol. The Td5's reputation rests on a handful of well-known faults - the oil-in-loom (oil-in-ECU) wiring issue, early plastic head dowels causing head gasket failure, and the fuel pressure regulator (FPR) leak - all fixable and well documented. The petrol V8s share the Rover aluminium block's dreaded cylinder liner slip. Add ACE active anti-roll, ABS/SLABS modules, and rear air suspension that all age badly, and you have a 4WD that rewards a knowledgeable owner with parts on the shelf and punishes anyone expecting Toyota set-and-forget ownership. Buy on history and condition, not on price.

Engines & variants

2.5L Td5 turbo-diesel

Engine
2.5L SOHC electronically-controlled turbo-diesel inline-5 with EUI (electronic unit injectors)
Engine code
Config
I5 turbo
Displacement
2495cc
Power
101kW @ 4200rpm
Torque
300Nm @ 1950rpm
Drivetrain
Full-time 4WD (lockable centre diff, dual-range)
0–100
~14.5s
Economy
10-12 L/100km combined
Tow (braked)
3500kg
Tow (unbraked)
750kg
Transmission
5MT (R380), 4AT (ZF 4HP22)
Timing chain / belt / gear
Chain-driven

Pros

  • Torquey, characterful five-cylinder diesel - good low-down pull off-road
  • Far more economical than the thirsty V8 petrols
  • Well-documented faults with cheap, known DIY fixes
  • Strong UK/Aus aftermarket and specialist support
  • Most sought-after and best-resale Discovery 2 engine

Cons

  • Will not tolerate overheating - cooling system must be perfect
  • Oil-in-loom and head dowel issues are near-universal if unaddressed
  • Fuel pressure regulator leak is a common no-start cause
  • Turbo runaway risk from cracked fuel rail / injector seals
  • Electronics (ECU, sensors) are fragile and dealer-priced new

Known problems

high
Oil contamination of the engine wiring loom / ECU
Engine oil wicks along the injector wiring by capillary action and tracks down the loom into the ECU connectors, corroding pins and causing misfires, erratic running and no-starts. Almost every Td5 needs this addressed.
Fix: Fit a modified/oil-sealed loom or repair the loom and reseal the ECU connector; clean the ECU pins. A well-known, affordable specialist job.
Any (age-related) · ~$300-1200
high
Head gasket failure from plastic head dowels (pre-2002)
Early Td5s used plastic locating dowels between block and head; they allow head movement and head gasket failure, which the Td5 does not survive well if it then overheats.
Fix: Replace head gasket using steel dowels; ensure cooling system (radiator, viscous fan, thermostat) is fresh. Confirm steel dowels fitted before buying.
From 150k+ km · ~$1500-3500
medium
Fuel pressure regulator (FPR) leak / no-start
The FPR diaphragm/seals on the fuel pump-in-tank or filter housing deteriorate, causing fuel leaks, hard starting and loss of prime.
Fix: Replace the FPR with an updated O-ring kit - cheap and a common DIY fix.
From 100k+ km · ~$150-400
high
Engine runaway from cracked fuel rail / injector washers
Failed injector copper washers or a cracked fuel rail in the cylinder head can let fuel pool and the engine run away uncontrollably even with the ignition off - potentially destructive.
Fix: Replace injector washers/seals as a set; inspect and replace the fuel rail if cracked. Address any blue-smoke or fuelling symptoms immediately.
Any · ~$400-2000

4.0L V8 petrol (Thor)

Engine
4.0L OHV Rover-derived aluminium V8, Bosch Motronic 'Thor' fuel injection
Engine code
40D
Config
V8 NA
Displacement
3950cc
Power
136kW @ 4750rpm
Torque
340Nm @ 2600rpm
Drivetrain
Full-time 4WD (lockable centre diff, dual-range)
0–100
~11.5s
Economy
16-20 L/100km real world
Tow (braked)
3500kg
Tow (unbraked)
750kg
Transmission
5MT (R380), 4AT (ZF 4HP22)
Timing chain / belt / gear
Chain-driven

Pros

  • Smooth, torquey V8 with a pleasant exhaust note
  • Much cheaper to buy than a good Td5
  • Simpler fuelling than the diesel - no oil-in-loom drama
  • Responds to LPG conversion to tame fuel cost

Cons

  • Cylinder liner slip is the engine's signature killer
  • Very thirsty, poor touring range on petrol alone
  • Weak resale next to the Td5 diesel
  • Aluminium block intolerant of any cooling neglect

Known problems

high
Cylinder liner slip / block failure
The aluminium block's steel cylinder liners can drop/slip as the block expands, breaking the head gasket seal, mixing coolant and combustion and overheating - often terminal for the block.
Fix: Top-hat liner re-sleeve or a rebuilt/replacement block; meticulous cooling-system maintenance to prevent recurrence. Coolant problems on a V8 are a major red flag pre-purchase.
From 150k+ km · ~$3000-8000 (rebuild or replacement block)
high
Head gasket failure / overheating
Overheating or liner movement causes head gasket failure; the alloy V8 is unforgiving of any cooling-system neglect.
Fix: Head gasket replacement with cooling-system overhaul (radiator, viscous fan, thermostat, water pump).
From 120k+ km · ~$1500-3500
low
Fuel thirst
16-20 L/100km is normal and worse when towing or loaded; touring range is poor.
Fix: Accept the fuel cost or fit a quality LPG conversion.
Any · Running cost

4.6L V8 petrol (Thor)

Engine
4.6L OHV Rover-derived aluminium V8, Bosch Motronic injection (fitted to 2003 facelift)
Engine code
46D
Config
V8 NA
Displacement
4554cc
Power
162kW @ 4750rpm
Torque
400Nm @ 2600rpm
Drivetrain
Full-time 4WD (lockable centre diff, dual-range)
0–100
~10.5s
Economy
17-22 L/100km real world
Tow (braked)
3500kg
Tow (unbraked)
750kg
Transmission
4AT (ZF 4HP22)
Timing chain / belt / gear
Chain-driven

Pros

  • Stronger and torquier than the 4.0 - the best-performing Disco 2
  • Smooth, quiet V8 well-suited to the facelift cars
  • Cheap to buy because petrol scares buyers off
  • Takes LPG well

Cons

  • Shares the same aluminium-block liner-slip risk as the 4.0
  • Even thirstier than the 4.0L
  • Only on late 2003-2004 facelift cars - low volume in Australia
  • Auto-only; weak resale versus the Td5

Known problems

high
Cylinder liner slip / block failure
Same alloy-block weakness as the 4.0 - steel liners can slip, breaking the head gasket seal, contaminating coolant and overheating; frequently fatal to the block.
Fix: Top-hat re-sleeve or rebuilt/replacement block; keep cooling system immaculate. Treat any coolant loss or overheating history as a major warning.
From 150k+ km · ~$3000-8000 (rebuild or replacement block)
high
Head gasket / cooling system failure
Overheating and liner movement cause head gasket failure on the alloy V8.
Fix: Head gasket replacement plus full cooling overhaul (radiator, viscous fan, thermostat, water pump).
From 120k+ km · ~$1500-3500
low
Fuel thirst
17-22 L/100km, worse when towing; poor touring range on petrol.
Fix: LPG conversion or accept the fuel bill; long-range tank for touring.
Any · Running cost

Common problems (all variants)

medium
ACE active anti-roll hydraulic faults
The optional Active Cornering Enhancement (hydraulic anti-roll) develops pump, ram and valve-block leaks and pressure faults, lighting warnings and losing roll control.
Fix: Repair/replace ACE pump, accumulator or rams and flush the system; some owners convert to fixed anti-roll bars. Inspect for leaks and warnings pre-purchase.
From 150k+ km · ~$500-2500
medium
Rear self-levelling air suspension leaks
Air-sprung models develop airbag, compressor and height-sensor faults, leaving the car sitting low or uneven.
Fix: Replace airbags/compressor or convert the rear to coil springs (a common, reliable fix in Australia).
From 120k+ km · ~$300-1500
medium
ABS / SLABS module and sensor faults
The self-levelling/ABS (SLABS) module, wheel sensors and traction-control system are a common source of dash warnings and intermittent faults on ageing cars.
Fix: Diagnose with a Land Rover-capable scan tool; repair or replace the SLABS ECU/sensors as needed.
From 120k+ km · ~$300-1500
medium
Chassis and body rust (coastal / age)
Rust appears in the rear chassis crossmember, rear quarters, boot floor and around the rear door on coastal or neglected examples.
Fix: Thorough underbody inspection pre-purchase; favour dry-climate, well-maintained cars and treat/repair early.
Any · Varies
low
Electrical gremlins (windows, central locking, wiring)
Window regulators, central locking, immobiliser and assorted wiring/earth faults are common with age and earn the Disco 2 its electrical reputation.
Fix: Methodical fault-finding, refresh earths and connectors, replace failed regulators/modules.
Any · ~$100-600
low
Driveline wear - front prop UJs, diffs, swivels
Front propshaft universal joints, diff/transfer wear and swivel seals wear with km and off-road use.
Fix: Standard full-time 4WD driveline maintenance; replace UJs and reseal swivels as needed.
From 150k+ km · ~$300-1200
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