It's an older series 2. The series 3 was more advanced with TC and ABS brakes. However there's less to go wrong with the series 2.
Check the chassis carefully for rust. The rear spring hangers are prone to failure as are the front brake reaction bar brackets. Also check all the body mounts for rust too. The engine should be quiet and the oil light should go out before it starts. Slight tappet noise is normal but might quieten with an often missed tappet adjustment. Make sure the gearbox works and the 4X4 transfer box goes in all 3 positions.

Oh and it's more than I'd pay for a 20 year old Terrano

Terranos are very popular here and tough old things. As Nodge says the 2.7 is a great engine. I think some of the older ones may have come normally aspirated. My cousin had the UTE 2.7 NA and said it was totally gutless - so try and make sure you get a turbo.

GrumpyGel said:

Terranos are very popular here and tough old things. As Nodge says the 2.7 is a great engine. I think some of the older ones may have come normally aspirated. My cousin had the UTE 2.7 NA and said it was totally gutless - so try and make sure you get a turbo.

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The 2.7 turbo engine is so tuff, it finds its way into the Nissan Navara pickup. The UK Navara was fitted with a powerful but unreliable 2.5 Ltr Renault turbo diesel engine. The Nissan unit makes a reliable replacement for them.