I'm looking into purchasing a used 1998 V70 XC; 2.5 LP, 4sp auto. What type of fuel does this car take ? Unleaded or unleaded premium ? What kind of mileage can I expect ?

I have yet to find a huge difference between regular and premium as far as gas mileage is concerned. I've averaged 19 mpg around town. Nearly 26 on highway. So says the computer and I've done my own calculating and found the mileage to be better than what comp says. Overall I've been very pleased with this car. I've put 6k miles on it and I've enjoyed it.
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98 XC 120k 83 245 DL 170k Oh yeah, and a 96 Neon

My last XC was a 98’ and I used 89 oct. and worked fine. Tried 91 & 93 not much difference. I now own a 04’ XC and still use 89 oct.

If you think that you will do a lot of hard accelleration, get 89+ octane, otherwise use regular.
Around the suburbs, expect 18mpg. This is a 4 wheel driver. On the Interstate, 25mpg @ 75mph. I have a lead foot with my HP turbo, so I use premium around town and mid-range on the interstate trips.

Klaus
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(V♂LV♂s 1975 164, 1995 854T, 1998 V70R)