I have the 5.7L LT1 engine in mine. It's a very fast car with smooth-as- silk ride. The odd thing is that it gets 25 mpg even with the performance axle ratio (that's the EPA highway rating too). I know other owners getting 27 mpg. It's funny that Chrysler's new Hemi (same size as the LT1: 5.7L) in the 300C/Magnum (a similar curb weight according to Edmunds) is rated at the same gas mileage (25 mpg highway) even though the Hemi is 10 years newer in design and even uses cylinder deactivation.
Shopping for a second car in 2000 I started on Edmunds.com and selected a couple high-value models (good ratings and low price). Then I went to eBay and started bidding - won a '96 Caprice. Fresh out of service with the Saginaw MI PD it has the LT1 and heavy duty everything. Got it with 75,000 on the clock. So far I've put a new A/C unit, replaced two front suspension components and put on new Michelins. It uses no oil and has had zero drivetrain issues. Now at 120,000 miles.
My 3rd Caprice. This car has 30000 miles. Just did 3000 mile road trip to Alaska with no problems. Best MPG was 26 mpg at 60-65 mph. Worst mpg was 17mpg at 8-100mph. Too Bad GM doesn't make a full size rear drive car anymore.
I'm a police officer in ME with prior sevice in MA. I never drove a Chevy cruiser until I went to ME. Wow, what a difference from the Ford's! I was so impressed I ordered a 9C1 Caprice in 07/96 and had to go back to MA to do it. This car is fantastic. It rockets off the line, corners like it's on rails, and gets 20mpg on the highway. The only problem I had was the crappy Goodyear Eagle RSA tires which were replaced. I love this car. I only drive it in the summer now, and am going to give it to my daughter as her first car, and the Cops can chase her around. Why GM discontinued the Caprice/Impala SS is beyond me. This car is a true classic and will be a collectors car I'm sure.
I bought this car second hand from an older couple. I put limited miles on it as I store the vehicle during the winters. I have the LT1 which is an awesome motor for power, towing, and economy. I can easily average 26 mpg. When pulling my 2100lb camper, I average 17 mpg cruising at 70mph; hard to beat that with an SUV. The ride is quiet and smooth; the leather seats are comfortable for long rides and I really enjoy the simple dashboard layout. The trunk size is great as well. I have never had a space shortage problem. Overall, the Caprice is quite the car; its very versitile and a wolf in a sheep's skin.