Well I've just got one, I think they are such good value for what you get.
I had an Alfa 156 and a Chimaera 450, it was costing to much to run those 2 so I got the MG instead.
The chassis is suberb, the suspension is very firm on mine, on par with the alfa (with sports pack suspension) and the TVR.
The gearbox is fine if you take your time, economy is what I expected, it uses a lot of petrol.
I'd say its handles much better than the E34 520i I had, but its still a heavy car, although the chassis does a good job of hiding it.
The 156 was the best handling car I've ever driven, trully amazing, I feared the MG would be like a barge in comparison, but it doesn't at all.
Its different but still a great drive.
If your used to powerful rear wheel drive cars then you will love it, if your not be careful, especially if you don't get one with traction control.
1. Is the mpg as seriously bad as I have heard? what is the best and worst case scenario?
I havn't worked it out yet but I'd expect it to be simmilar to the tvr (20ish)
2. The parts/service situation worries me, am I right in saying that a lot of the ex franchise garages still service the cars using the company x part?
Not had experience yet but there seem to be a lot out there, its an easy car to maintain, service costs even at a ex main dealer look very cheap compared to what I'm used to paying.
3. What is the cambelt interval for the 260?
It's got a timing chain.
4. Is depreciation a major concern? they seem remarkably good value at the mopment but I don't want it going the same way as a vitesse turbo coupe I had which I couldn't giveaway!
I dont think so, the good ones were selling quickly when I was buying.
There were only 880 odd made so they are rare, potential classic I'd say.
5. I read a lot of debate about the standard exhaust and aftermarket versions, having heard both on you tube it really is difficult to hear the differance, is this the case?
I fitted the xpowers, they are standard TVR loud, lots of pops and bangs, love em, although onlookers are going to think its a bit boy racer I would imagine. The vid on utube doesn't do them justice.
The standards were pretty quiet, depends what you want.