Congrats on buying A Discovery 2! They're great vehicles if they've been maintained, which hopefully yours has. As a seasoned owner who unfortunately purchased a neglected one (it's a love hate thing!), a couple things to keep an eye on ( I don't mean to scare you, but you NEED TO KNOW some of these things going in to owning a Disco):

1. I can't stress this one enough!!! - Make sure you have the drive-shaft (or propeller shaft as the Brits call it) examined by a rover technician immediately if you haven't done so already. Here's why: Disco 2's have non greasable u-joints and the double cardon u-joint at the transfer-case is the one that fails. In English, what this means is that these joints simply wear out and can not be lubed to extend their life! At SOME point, if not replaced when worn, rust will corrode the joint and it will simply snap! When it snaps, which happens while moving, the drive shaft swings around like crazy, and slams through the transmission and sometimes up through the floorboard!! Sounds like an urban legend, I know, but I personally know two people who this has happened to!!! 2!! As you can imagine, the vehicle is totaled at this point and is only good for parting out. DON'T LET THIS HAPPEN!!! Vibration while slowing or stopping is a good indicator - treat it like an emergency. So go ahead and plan on at some point replacing that shaft - DON'T do it at the dealer either. Atlantic British is a good source for LR parts and any Euro shop can do it. (new shaft is a few hundred bucks)

2. Also, as I have told other friends, at some point ALL Land Rovers will blow a head gasket and require an "head job" where the engine is pretty much dissembled, the pistons are re-surfaced, valves done, and gaskets replaced. The parts are actually relatively cheap ($100 or so) but labor is intense. I've owned two and BOTH of mine have had to be done. A good friend of mine also has owned 2 and his have both had to be done as well (this includes Discoveries, Defenders, Range Rovers- All.) The way you'll know this is happening is a couple of ways: white/grey smoke blowing from tail pipe, means coolant has seeped through the gasket into the oil; and/or your heat indicator will jump into the red and will read super high. May just be a thermostat (which in the disco 2's look like a big plastic artificial heart) or this dreadful problem. Either way: SHUT IT OFF IMMEDIATELY!!!!!!! DO NOT DRIVE IT IN THE RED!! EVER!!! the 99-02 may be a bit different, but don't chance it. The way the HSE engine for the 03-04 is designed is that if it gets too hot, the steel piston-liner can actually warp and separate from the aluminum body, causing a "slipped-liner". It's a death sentence as there is no way to repair it without replacing the engine (a used engine replacement will cost you $6000). More than likely, if you haven't driven it "hot", the damage will be limited to the head gasket, which is still a shocking $2000 repair. Plan for this- it creeps up but WILL happen :/ . Check with the former owner if possible. They may have already bit the bullet for you!!

Despite these perils, I still LOVE my Rover and will likely be driving one for awhile! Just be aware, get your oil changes (you don't have to use the expensive stuff, but I would recommend 10/w/40 High mileage), check your levels every few times you get gas, and know that you own a great vehicle!

 

You don't need to have the drive shaft inspected by a rover tech. you can simply look under yourself and figure it out.

the drive shaft won't always destroy the transmission, transfer case and so on. it can simpl fail at any speed. plenty of people have made it thru a failure without damage. and the truck is still repairable it does not have to be scrapped or parted.

the heads don't always need to be resurfaced. its good to have them checked though. the parts are more than $100.

you can also notice a HG leak with a loss of power and of course CEL codes for misfires.

no just the 4.6 engines can face slipped lines that can happen in teh 4.0 as well.

 

Seems like with most people if youre leaking coolant and you can't seem to locate it or notice any puddles before really digging in then it is likely a head gasket. Like a 90% chance.

 

If your drive shaft breaks apart at highway speed then it will trash your tranny and possible some other expensive parts. You will at least need another drive shaft and tranny. If the drive shafts breaks at low speed then you might dodge a bullet and not suffer significant damage, other than the drive shaft itself.
These engines do not do well with over heating, over heating leads to many failures. So the bottom line is make sure the cooling system is operating correctly, don't neglect that.