A colleague has offered his 2000 S70 to me for the scrap price of $250. Base NA, 200K+ miles, with transmission issues (he says "solenoid codes" and that it drives, but sluggish).

I'm trying to decide if I want to bother with it. First year for the AW55-50 5-speed transmission which we know is infamous for it's issues with software, valve body/solenoids and the B4 servo cover upgrade. The upside is that they're all well-documented and parts now relatively cheap. What I haven't been able to quantify though is the risk that the failed solenoids or valve body have irreparably compromised the rest of the unit. Anyone care to hypothesize on the severity of the issue? I figure i'm in for a set of solenoids, maybe a rebuilt valve body at least. Maybe a computer reset and adaptation?

He replaced the P-N-P shifter switch a few months ago which he claims solved the issue (perhaps a different one) temporarily, but now with the solenoid codes he's done messing with it. Overall car cosmetically imperfect but he's put a lot of work into over the past 2 years so should be a reliable driver otherwise.

Thank you,
Will

To clarify: Based on my interneting, while the 5-speed automatic AW55-50 is best known for problems in the 2001+ P2 cars (S60/V70 etc) It was first offered in the 2000 S70 Base while the other (turbocharged) S/V70 models continued on with the ol'reliable 4 speed.
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XC60 / Odyssey

2000 V70 SE N/A, AW55-50, Denso, 272K miles

Just a footnote to add to the discussion.

Original owner of this car, purchased in April 2000. The V70 "SE" issue also had the AW55-50 five-speed auto gearbox.

With regular 52,500 mile ATF dump-and-fill intervals, the transmission is still serving well. In the first year of ownership, the car experienced well-documented gear change issues, and it wouldn't unlock from fifth gear when rolling to a stop without a big "clunk" that could be felt and heard. The software upgrade fixed that problem, after the Volvo dealer realized there was a problem after researching the TSBs.

3309 ATF is always used for dump-and-fill, which helps keep the solenoids and servo from being damaged, and maintains the internal filter from clogging sediments.

Reminds me of the Volvo dictum: ATF is good for life! Of course, we all know that the "life" span is less than 100K miles, the initial warrantee is only for 50K miles.

Good for you! Changing the ATF does help extend tranny life by keeping the parts clean.

The problem is, once the ATF gets really dirty, there is no way to clean it again.
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Keeping it running is better than buying new

If you repair the tranny issues, the car is still only worth less than $2K, probably closer to $1K. The other tranny issue would be the wear and tear due to the constant slipping because the car starts in 3rd gear! If he drove it for a few months like this, I would run away.

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Keeping it running is better than buying new

Life partner brought me to my senses. It's a car we neither need nor desire.

I have faith that it can be brought back. those trannys can put up with a lot. I hope someone will intercept it before it goes to the crusher.
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XC60 / Odyssey