Do you know where the leak is coming from? If it is coming from the rack tubes as Dave mentioned then the rack needs to be replaced. However, if it is leaking from the seals it might be salvageable. My old 850 developed a minor leak too. Since replacing the rack is more difficult and expensive than on a 240 I started looking for other solutions. Discovered it was a seal leak. So I flushed the rack fluid. Then I replaced it with Mobil 1 synthetic ATF. At first, the leak worsened but after about a month the synthetic cleaned the seals and leak went away...:) Did have to reflush and replace after about 2 years as the leak eventually came back. Still a much cheaper option than replacement!
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Will I buy another Volvo??? We'll see....
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