I can't comment on the V50, but can comment as a current owner of a 56 plate C220 Estate.
As GB has already said, the diesels are bullet proof and give few issues as long as regular servicing is carried out. I personaly don't go with the MB service plan of oil changes every 17K - I change mine every 5-6K, but that is for my piece of mind. The autoboxes on these cars are also very good and give little trouble again, as long as service guidelines are followed (ATF changed every 40K). When the OP says his car has a failed rad, is this the issue with the rad leaking coolant in to the gearbox? If so, this issue was fixed with the switch from Valeo to Hell/Behr rads and was sorted, AFAIK, by 2004.
MB did have rust issues but these were vastly improved on the C Class from around 2005 onwards, however, you still have to be aware for signs of rust in the normal places (front wheel arches and rear wheel arches).
I've owned my C Class since Feb2013, when I bought it with 78K. It's now up to 124K and in that time, other than normal consumables such as tyres and pads/discs, I've had to replace the front suspension droplinks and anti-roll-bar (done at 115K) and the air-con condensor (top edge split with age/exposure) and the serpentine belt which drives the PAS pump, air-con etc. All parts I've done myself and these cars are actually surprisingly easy to work on if you like DIY repairs (plenty of room in the engine bay). What I have found is that many parts can be sourced from Eurocarparts and are of equal standard (when you buy known brands such as Hella/ATE/Conti-tech/Bosch etc) compared to MB OE parts. Other tip is you can maintain MB FSH by getting the £150 MB 7+ Value service done (but obviously you'll have to get the other bits that aren't covered done by an independant or yourself). Or if you have a good MB indy garage local, then just use them (I don't have one nearby).
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