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The horn on the firewall is the siren for the alarm system. Who cares if it works or not.
A 1993 240? Sounds good.
A trip to the local parts store and they can read all of the codes. Autozone doesn't erase them, O'Rielly's gives me a scanner so I can read and delete in their parking lot. Remember to write them all down.
The 1998 is still the 'old school' OBDII system. The 1999+ cars have the newer system.
A headgasket leak is diagnosed just like the 240, look for bubbles after the engine is hot.
BTW, you probably have a cheap thermostat with the temperature set too high. Put a new one on your list. The cheap ones fail in the closed position, death to the engine.
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Keeping it running is better than buying new
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