The spots to watch on that car are:

As expected timing belt/water pump/etc for regular service (every 60k)

Transmission if automatic. 197k is a long life for an automatic.

Cats go and cost a bunch to replace... at least $500/each.

Suspension... bad luck in that department can be costly. Bearings, bushings, tie rods, etc. I've had a few problems on my '96 after 73k. Lots of weight on the parts with quattro.

Otherwise, it's just normal maintenance. The car can last to 300-400k, if properly maintained and cared for.

I own (from new) a 1993 100S 5 speed manual with 149K miles to date and anticipate keeping the car until 200K where I will have to do another timing belt change ($800+)I will evaluate the car at that point to going our another 50K or so. Overall the car is reliable and still pretty fresh. The one general opportunity for improvement has been the rear brakes. I have had repeated hang up of the emergency brake system which gets pricy to deal with. If you are going to buy a high mileage car, you will want to verify the qulaity and frequecy of maintenance. If the car has not been really loved by the prior owner I would be wary. Maintenance is expensive when you need it and few people are experienced in this car. I have been fortunate, I still have the orginal battary (in Michigan no less)the original clutch and exhaust system. Both catalytic converters went south many miles ago and I have resisted replacing them due to the high cost. I did experience an oil leak at about 110K miles that cost about $800 to fix (ouch. Other than brakes, the timing belt with water pump every 70K miles, the car has been good to me.