Face lift model should have the new tail lights (similar style to 2006 CLK). E500 is expected to get new 5.5L motor same as new S Class ~380hp. New bumpers, possibly new hard-drive based COMAND. If you're getting E350, it's mostly cosmetic changes. For E500, it may be worth the wait.
You can get 2005 E500 today for about $10k off MSRP. Not sure about 2006 E350.
I would be surprised if there is much inventory left on 2005 e500s, although discounts are available on what is left, so slim pickens on options and colors. If you are picky, and for $60K-$70K most people are, you will have to get a 2006, either "off the lot" or ordered.
On iPOD hookup...the option can be installed at the dealer for 2005 and 2006 models. The E class hardware should arrive at the dealers any day now and is already avaialbel on C class ond some other 2005 models. Available on all new cars.
I in PA and spent many weeks researching e350 prices. In short, the $57K MSRP car I wanted I got for $51K from my dealer. A CA based broker, luxury auto imports, could have gotten it for $50K but due to shipping I passed. The $51K I paid was roughly $2K below invoice. I did the deal in August. The dealer had a hold back of about $2K off the invoice. My car was also a 4 MATIC which is tougher to negotiate on. So I think you should target $2K below invoice. All this employee discounting stuff is making all manufacturers get aggressive. As far as body changes MB is not due for an overhaul of the E until 3 years from now. Even though the E hasn't sold as well as MB hoped, this isn't because of the body style, which has generally gotten rave reviews. For me, the current E body is timeless and will look great 5, 10, 15 years from now.
I got my 4MATIC in the east. However, the broker I talked to (but didn't use) found one in CA for $50K. It would cost $1,500 to ship so I was better off buying locally. I can give you his contact information if you want. He did a great job of trying to find the car I wanted.
Actually, I have someone on the West Coast looking for me, and I have two appointments today with "New Jersey" dealers..Will see...
Also, a couple of dealers in NJ say that they are having a hard time keeping the 4-matic in stock..Plus my wife wants a hard to get color combo: Plat Blue with Stone...With the Prem Package (526)