Is the particular police department NOT a part of the municipality?
To me, this deal seems a little unusual. Many bids for new vehicles also include disposal of the old vehicles by the bidder. There are some private dealers who also have contracts to take the old vehicles separately, then they re-sell them to private parties. There are some dealers who specialize in used law enforcement vehicles, too, on a national basis.
The OTHER side of the deal is that many of these cars could have been "patched together" to get to their sell point. Don't expect them to have been serviced by dealership techs, either, unless that was the best choice they could make for the $$$$ spent. A variable situation. Be that as it may.
On the later first-gen LX Chargers, I was at a municipal repair shop that had a Charger in a bay. I asked how they were doing. The reply was that there were issues with the control arm bushings. He also mentioned that he thought they would be replaced with police-spec Tahoes.
As for driving them . . . I ended up with a black Charger R/T for my last (2005) trip to Mopar Nats. I'd rented some 300s before that. The suspension tuning on the Charger was a little better than on the 300s I'd rented, but still nothing really special in feel and such. The Gen 2 LX 300s, with their re-tuned suspension (basically getting rid or the Daimler "GM Feel Numbness") gave them a more Chrysler-like light on its feet, lets GO feel of old. That is good. I was skeptical of the 8-speed ZF TorqueFlite, but it works nicer than the 5-speed ZF Mercedes automatic, PLUS the car acts better with more fuel economy. Last two R/Ts I rented averaged 30mph on an Interstate trip where I was "just driving" and enjoying the car, with the flow of traffic at legal speeds. For THESE items alone, I'd head more for a later model than the earlier one, personally.
I understand the cachet of a Mopar Cop Car, more so on the earlier models than the LX cars, plus the desire for a financially-neutral transaction, BUT you might be better off looking for a normal used 300 or Charger in the $7K range than a "cop car" in the $3K range.
Your dreams. Your money. Your decision.
CBODY67