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Bad mechanical portion of ignition switch (part where key goes in). I have performed this repair on my V70, and it is quite common. Assuming it has never been replaced on your car, you've done well to go as long as you have.
Call the dealership, give 'em your VIN, and they can order in a new switch that will use the same key you have now, plus you get a new key with the new switch.
My dealer charged me $108 US for my replacement part.
BUT, and this is kind of the wrinkle, the repair procedure can be a real hassle. send me an email at vaboof@yahoo.com and I will send you a write up on the procedure that may be helpful.
Alternately, if you're not feeling handy, the dealer will probably charge an additional 2.5 hrs labor to do the repair for you.
BB
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1998 V 70 BASE
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