A little smoke shouldn't matter. How dirty was the oil, that's more important. Any clatter from the engine? Not a sign of a failing turbo. Does it have boost? It should. The squeeling could mean that heater motor is going. A lot of people take them out and oil them...these last a long time or could die tomorrow, but repair is DIY and not expensive. More of a concern would be service records...complete or not?? and the A/C, which is a weak link with these cars. If the evaporator is bad, it won't cool and to replace the evap., the whole dash has to come out...about $1200 repair job. Since it's cold now, unless you read this you might not have even checked. We bought our '94 850 in the early months of '98 and didn't check the A/C. When May/June came around and it got hot it didn't work. Never thought to check it in the winter time. Back then we paid $1000 for the replacement of the evap. at an indy. Good luck. If if it drives fine and the above is good, then you'll thoroughly enjoy this car!
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1998 S70 T5 Emarald Green Metallic, 2004 V70 2.5T Ruby Red, Previous Owner of Black '94 850 Turbo Wagon. My cars have been running so well lately they've got me worried.