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Main problem with the 3rd gen (FD3) is that the owners don't take care of the cars properly. They require frequent fuel filter changes and it's a very lengthy procedure to complete - so most skip it and the engines run lean and blow as a result. The cooling systems are also marginal and again, if they're not kept up it's bad news. Rotaries are not tolerant of overheating.
A few simple modifications to the FD platform, plus some common sense with regard to maintenance, yields a very reliable car. But most people just assume they're unreliable and stay away.
Yes, the fuel mileage does suck. No way around that.
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