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You can go a couple years newer, up to a 95 940, and still get a "real" Volvo. As long as it's rear wheel drive, and the engine block is red (but the 16V ones are probably best avoided) you can't go too far wrong. 740s are in some ways better than 240s---much less rust prone, roomier---and some ways not as good---front brakes are an inferior design, interior trim is a lot more fragile. Mechanically they are just about identical. The 940 is an upgraded 740 with minor restyling.
The 850, and later cars, are a whole different animal. The 850 (other than the 93 model, which is kind of lemony) aren't bad cars, and will go the distance if kept up, but are a lot more complex and difficult to work on than the older ones. The first generation S70/V70 is a renamed 850. Avoid the early XC wagons. They are often troublesome. The late/current model V70s seem to be holding up well so far, as do the S60s. S80 is even more complicated than V70. S90/V90 is a renamed 960. 960 is a 7/9 series car with an aluminum engine similar to thet of the 850, with an additional cylinder. Not as rugged and durable as the iron block 4s. Early ones in particular were prone to problems. I'm not a big fan of the small Volvos--S40, V40 and V50. The first generation ones were Mitsubishis in disguise, the current ones are reworked Mazdas, that are also related to the European model of the Ford Focus. The same is true of the C30. I don't think they will turn out to be anywhere near as durable as the "classic" RWD models, or even the 850.
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