Sorry that I didn't catch this earlier. The 1997 was the last year of the 850, the V70 came to life in 1998. So, if the dealer is trying to sell you a 1998 855, he is lying. Sorry.
With so little milage, I would be leary about engine sludge and proper oil movement in the engine. The timing belt has not been changed, but it is old enough, along with the Sbelt.
It is probably too soon for the evaporator to spring a leak, but it will. It will need the oil breater system cleaned out. Plugs, and filters. Check cabin filter under the windshield, it will be dirty.

Sounds like a good buy if it is a 1997.

Klaus
--
Please answer, we need to know if the advice is good or bad. The 164 has a new home, all I am left with are 2 turbos :)