I have a '98 S70T5. It has 56,000 miles on it. It hasn't exhibited any electrical problems to my knowledge, though I have only owned it two years.
Funny, my car's biggest disappointments are the two things another reply states. The door panels tend to delaminate where the indentation is. The driver's door is the only one that didn't, probably because there is an elbow in there occasionally. Also, you can't reset the service engine light without a special tool.
The service engine light ticked me off too, so I spent a half hour pulling the dash pad and yanking the light out of the dash. "Problem" solved. Everyone with a brain knows when to service their engine.
The '98 has a better transmission than my '95 has - shifts more smoothly and doesn't trigger the flashing arrow. The seats are very similar to the ones in the '95 - they killed a couple of head to make these things. Very comfortable. I miss them when I get into my '05 V70.
My guess is the mechanicals are as reliable as the later 850's (most are the same). The ABS electrical failure I believe carried into this year, but you can get that fixed by Vic Rocca for a reasonable price if need be.
The button finish in the '98 vs '95 (windows controls, A/C, etc) are a rubber that nicks easily and softens a bit in the sun. Just something I noticed. I believe they used a lower grade plastic in the dash as well, and there is a tendency for the mounts to the firewall to crack and cause a squeaky dash. Mine doesn't exhibit this.
I would say buy it, if the 850/S70 interests you. I sold my '95 Turbo for that price with 180K miles, but it was Ebay. If I had a local seller I could have gotten more. Good luck.
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