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940 first. The headgasket is a fairly simple fix on the 4cyl red block and is a contributing factor to the O2 sensor failure. The dash is cracked, but no big deal. The seat cushion can easily be swapped from a passenger seat from a donor car. Your car has limited slip which is a big help in the smow/wet. It is still a good car and you know what is wrong with it. $500 is about all that is needed to keep it reliable.
The 850: A very good engine, not so good tranny. A headgasket on this one is close to $1,000. The dash doesn't crack, but it does come loose and squeek. The driver's seat usually wears on the left bolster from the seat belt rubbing against it. The seat back cover can only be replaced by another driver's seat.
The 850 requires a little more maint than the 940. A tranny flush every 30-50K miles. The 'flame trap' requires intake manifold removal, probably needed by now. The driving wheels and steering are done by the front suspension, the 850 probably needs new struts and the steering componants need to be checked out.
While the cabin blower is easy to replace, the AC evaporator is hell. There are twice as many electronics on the 850 than the 940.
It is nice that the 850 is a one owner and comes with a set of snow tires. But you still need maint history. A failed timing belt will result in engine replacement.
As for prices, in Minneapolis a 93 945 is worth the same or more than an 95 855. The gas mileage is about the same, perhaps 1 or 2 mpg less for the 850.
Klaus
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Proud owner of a 1967 220S. If I had more room, I would have more Volvos.
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