i would buy it. if you drive it and it shifts smoothly and does not force the engine to over rev, i would say youre fine. have a volvo specialist look at it. i think these cars are pretty close to bulletproof. i have had very good results with mine, but it is not a turbo. i do beat the piss out of it (not by slamming the right foot and going up through the gear selector 1-2-D, etc)once in a while and a little winter fun on the snow, using the overdrive for overtaking, and using the kickdown once in a while, and no problems so far.
remember that these cars are based off the 7 series which is an offshoot from the 2 series, but i think the transmissions are very very similar. since their beginning to the 90's those transmissions have been perfected. mine has 153,834 miles on it...no leaks, noises, drips.
i would buy it, but before look in the RWD 9series forum.

Kbb.com says $2900 for tradein value - $4500 for person to person trade. Tell him you will buy it for $3600 and ask for a 3 month/3,000 mile warranty! The tranny will either be in great shape (adult driven) or fall out next month (race driver). If the car lasts for a year, which it should, you will be ahead of the game with a fun car.

Klaus
--
98 V70Rawd(101Kmi), 95 854T(85K mi), 88 245(165K mi)

If the car is in that good shape low ball them for the price of a new tranny .
All they can say is no and if it last another 70,000 you made out.

First thing with any used car with questionable history (which is just about all of them) is get a history report from www.carfax.com or www.autocheck.com are 2 big ones. They cost a few bucks but at least you'll get info on registration history, accident history and so on.

One quick thing to look at is the tranny fluid - pull dipstick and wipe on clean white towel. If black and burnt smelling, a sign fluid not changed since new so look out. If bright red, is has just been changed so I would wonder why? Somewhere in between likely normal use and go to next step.

Next find the Volvo dealer or indy in your area and have them check the car. Will probably cost about an hours labor but you'll have a list of issues they find that you can use to negotiate a lower price. Brakes, calipers, main oil seal leaks can be expensive too. No offense but they can check tranny better then most new to volvo folks, even with brickboard help!

Good luck