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I am looking at a 1995 Toyota Estima Lucida 2.2 Diesel 4WD. Are there any known faults with these?
Also does a 4WD use more fuel than a 2 wheel drive?

Not a great choice of vehicle to be honest. The early Estima (rear wheel drive) is a mechanics nightmare to work on in regards to the engine layout and position.

A diesel engine only makes matters worse. Potential high repair costs can cost more than the vehicles total value.

If you must, go for a petrol 2WD version.