I've had mine apart a few times. Not difficult, it probably just needs a
good spray out with solvent and compressed air, then relubricate it. That
worked for me.

RS

As Rusty says, it is a simple enough mechanism. Light grease should get it
working like new. The upholstery comes apart much like a door panel does -
be sure to remove the inside handle first. Use a pry bar gently around the
edge, because the push-in clips will try to tear out of the upholtery if you
are careless. Allow an hour or so for a DIY.

Mike

Hello JG:

I've seen countless 240's with the same issue--including my own which
I bought used.

Best bet is to inspect it first after removing the carpeted panel on
the inside of the tailgate. Note: do this carefully with something
like a 1" wide plastic putty knife to avoid scratching paint---and do
it gently or you could break the fiber board backing the plastic
bayonet clips go through.

If it does not look rusted a liberal dose of white lithium grease
should be more than sufficient.

If it DOES look rusty (common here in the Northeast US even if the
rest of the car has NO rust) remove the latch a and soak it in a
cleaning solution, detail it with a small brass scratch brush, soak in
an oil bath and then re-lube and re-install.

Check function and movement before reinstalling. If it is not fluid
and smooth and "stiff, look for a used latch in good condition at a
Pick-and-Pull (Good luck on that)

Otherwise your only option is a new latch assembly. Not sure what they
cost for a 740, but for a '93 240 they are $97 and change at the
dealer.

Regards,

Doc