For the most part Contours are just as reliable as the average car. As auiotour posted, upkeep is a major item. A 98 with that low of miles should be in pretty good shape and probably a great bargain. I drive the crap out of my SVT and yes I have had failures, but nothing major. After 1.5 seasons of autoxing it with race tires, tracking it twice, and 55K of hard street miles my car has had this go wrong with it:
IMRC controller (These seem to have problems on quite a few contours, mine was replaced under waranty but you're looking at around $150 to replace it if it goes bad I believe.)
Power Steering pump (Failed after only 20K miles, this was probably due to sitting on a lot for 2 years before being bought and then getting autox'd. I bought my car NEW in December 2001, it was made November 1999.)
Fuel Pump (Another common problem with the SVT's at least, but it is pretty cheap to fix as long as you don't mind getting your hands a little dirty.)
Motor Mount (Again a tragedy of racing, expecially drag racing which I've done three times now in the car. I have not replaced this, but I wouldn't expect the normal user to have to either.)
That is it. Personally with all the crap my car has been through it has been very good to me. Would I buy another, yes due too how low the prices have gotten. I think the car you are looking at sounds like a very good choice.
240sx's are NOT fast unless you make them that way. Those stupid truck motors they have are retarded. Now if we're talking SR20DET swap, then by all means they are nice cars.
2004 Focus PZEV 2.3L - KW sport suspension, SP camber plates, Eibach front swaybar, FS intake, FS Stealth exhaust, 3.82 Final, Torsen ATB, Prothane MM insert, E1 CSVT wheels
1/4 mile -
15.201@89.4mph