It is and is not as bad as you have heard. If not properly maintained, then definetly and expensive problem. But I have seen a number of them w/o any problem for 150,000 miles and more. Keep all tires inflated the same religiously, and never mix tire brands, size, or condition. Have bevel gear fluid changed as soon as you get it. You will find out then what condition it is in. If bad, get a used one from Erie Volvo on the internet. Will cost one-quarter of a new one and then you can keep up the care from then on. Budget $1500 for the replacement just in case.
I have a 1999 S70-AWD with 103,000 miles. Bevel gear still good as new. A mechanic in Denver has one with 185,000 miles with no problem.
That all said, if you can afford it buy a 2002 or newer you won't have a problem, unless it was abused. NOTE: all AWDs really should be taken care of the same way, even newer ones, as mentioned in the first paragraph. They still can be ruined, but the 1998-2000 Volvos are more sensitive.
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