I've had about 30 RWD Volvos, and 3 FWD Volvos. Here's what I've learned about the cheap first generation S/V series cars that are currently widely available:
Don't even consider the '99-2000 editions; look only for a '98. 99-2000 have bad transmissions, bad (electronic) throttles, plus '99 is the first year for coil packs instead of a distributor, and the first year for variable valve cam timing.
At this point I'd guess that a majority of the cars that started out as AWD have been converted to FWD. That driveshaft is a very expensive part and very few last more than 150k.
They like burning exhaust valves somewhere between 200-225k. These motors really need to run on premium non-ethanol fuel, and they need to see occasional high revolutions. One that's been run on regular and driven so it never sees above 3000 RPMs will blow an exhaust valve by 150k. Carbon build up is no good in these motors. If you get a great deal on one that's got 210k on it, budget on a head rebuild at some point soon, or seafoam it and hope for the best.
ABS/TRACS computer is another nearly universal failure. The dealer price for a new one is insanely expensive, but you can fix them yourself for free if you're comfortable using a soldering iron.
Those are the downsides. The biggest upside IMO is that they are incredibly comfortable on the highway--much much much more so than any 240 ever built. More comfortable seats, quieter, easier to drive, better at high speeds, etc. They absolutely eat miles out on the open road. Oh, and yes, they don't rust.
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