That is a realistic price for an "R" with suede seats. Mechanically, it will probably cost an additional $1,000 to get it to a reliable condition. Check under the engine for oil leaks - my RMS leaks and that is quite costly to replace the seal. Check the tranny fluid, it should be red and if it is brown/black then refuse to buy the car as the tranny will die soon.
The 1994 has OBDI plus a scanner plug under the coin tray in the center console. Using the under hood diagnostic boxes is a lot more fun and allows access to all of the car's systems.
The ECC unit works the same as your S70, if the blower is in auto mode and the yellow lights blink, don't despair as the OBDI can tell you all of the faults.
Expect the shocks/struts to be replaced soon, steering arm bushings, control arms, etc are probably on their last legs. Check all windows, sunroof, wiper motors working. Probably some bushings in the rear suspension will need to be replaced. BUT, there is time to do all of those things and you can budget accordingly.
The car is FUN to drive!! Any maintenance records are a plus. Get a CARFAX? Parts can be had from 1997 or older 850's. Seat skins are very hard to find if the driver's is worn out, but black seats last longer than the light beige.
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My back feels better when I sit in a Volvo seat
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