One more thing to check: is there a plastic cover on the bottom front of the engine? Sometimes, the cover falls off. Mail order Volvo parts places have these, and they are easy to replace. You do not have to remove the cover to drain the engine oil or change the filter.

Take a hard look at the floor pan. They like to rust out under the front seats. Can be repaired, might be a bargaining chip. Try and drive when cold and note if steering is hard. Could be steering rack or u-joints in steering shaft. Make sure heater motor works good. These are a B*tch to replace. Odometers usually don't work, be leary of mileage shown although the durable motor makes this a minor issue.

I bought my '86 245 about a year ago and I love it. It had about 200,000 miles and not the best of care. Here's what I did to it:
1. Replaced rear trailing arm and torque rod bushings to get rid of clunk in rear. (A hard job unless you've got the right tools)
2. Replaced shocks and struts
3. Replaced ball joints
4. Replaced upper strut mount bearings
5. Cleaned flame trap
6. Re-wired the two wires from the oil pressure switch and alternator away from under the engine to back along the passenger side fender to the gray connector on the firewall.
7. fixed a leak in the rear center storage compartment by sealing between the body and bumper with silicone. I'm still fighting a leak into the inside of the tailgate.
8. Cleaned and sealed a few rust spots on the inside lip of the tailgate with POR 15.
9. Added a tach and voltmeter.
10. switched to synthetic oil ( 13-30 Amsoil)Oil usage is about 1qt/6000 miles!
11. Cleaned all grounds, resoldered the main relay, cleaned all electrical connectors I could reach to eliminate an occasional brief engine cut-out.
12. Re-wired the tailgate harnesses through the hinges.
13. Will replace alternator, AC, and pwr steering bushings this Spring along with the Accessory belts and timing belt.

The overdrived hesitates to shift on sometimes so that is my next project.
This sounds like a lot but I did it all myself and learned a lot doing it. Got great advice from the Brickboard. Cost wasn't very much, bought parts on the 'Net. I now have a really reliable useful vehicle! Sorry if this is too long.

All those are good suggestions, and all I've fought and conquered on my '86 245, plus more. I wouldn't give her up.

The A/T tailshaft bushing and seal might be worn if it's a hi-mileage car (like 200k or more).

If the car spent its life in the rust belt, look carefully at the diff cover for pinholes.

All the relays can be RESOLDERED for $0 and will give a lifetime of faithful ad reliable service.

The B230F in the 240 can pop the big plug from the rear of the head if a previous owner neglected the crankcase ventilation system. And this can still happen even after cleaning up the flame trap, et. al. Check the plug -- if it's starting to ooze out, then push it back and consider a retaining strap. IPD sells one for around $20, but you can make your own for $0 and a scrap of aluminum flat stock.

You can usually push the plug into position using a prybar, big mutha screwdriver, or even a brake spoon by bearing against the firewall (just 1" clearance).

The bolt holes for this strap shown below are the distributor mounting holes. When this engine is used in the 740, the distributor mounts in this location. In the 240, however, the distributor hole is plugged and the two bolt holes are unused.

Owning a 240 of '86 vintage I would say thera are 3 primary things to look for. Corrosion on the floor pan and sills, crankcse ventilation induced oil leaks and crumbling engine compartment electrics are likely to be major players.
Beyond that, check everything as you would any used car.

Good luck,

Big Rich.
--
'86 245, B230A. 161k. Old 200s never die, they just live on in other cars.

Check the following 240 wagon specific things in addition to the usual checks on any used car:

a. Does the overdrive work? Often there is a failure in the relay or wiring (not too expensive).

b. Oil leaks? The rear main seal may be leaking. May be a good deal of trouble to fix.

c. Heater blower motor? If it doesn't work, replacing it is a lot of labor. If it works poorly, there is a drill-and-squirt-oil method that may fix it (instructions floating around the net).

d. Tire size? You should see 185R14 (what the manual says) or 195/75R14 (a close alternate size with better availability and selection than 185R14) if it has the original 14" wheels. 185/70R14 is commonly put on in error (it is the sedan's tire size). Check the spare while you're at it (a full size spare will fit in the spare tire holder, although the original may have been a smaller size on a regular 14" wheel).

Another point to look at is the condition of the bushings that most of the belt driven components mount with. Easy to fix, but a tad pricey. Of course, look for the oil leaks, the failing wiring, the worn suspension components, and the bad Overdrive. Since you are a do-it-youselfer, you can fix them cheap but use them as bargaining chips to bring the price WAY down. "Well, you know, mechanics for these European cars are pretty expensive..."
--
Blane Gardner Couple of Volvos, Couple of Toyota Vans, and an Old Chebby

Ditto the previous post on checking the wires under the hood - almost a lock to be an area of concern. Absolutely check/clean flame trap - check the forums here for info on the "jiggle" test or the "palm" test. If the engine bay has a film of oil, you can bet the flame trap needs attention. Neither problem fatal or a deal breaker, but does reuqire immediate attention. If the 86 is an automatic, be sure it is shifting into overdrive. Any number of possible problems if it isn't - some relatively easy to fix, some not. Listen for clunking sound from rear end area during acceleration or shifting from 1st to 2nd - if there, it may indicate worn trailing arm bushings (a little expensive to have fixed).
Those are some things I learned AFTER buying my 85 wagon - and learned it all from the great folks on these boards. By the way, I love my wagon - you'll probably love yours too!
Good Luck!
Roger

Look at the wiring on the back of the alternator; most likely the insulation is ALL gone. The rest of the engine compartment wiring is probably ugly, too.
It's not a fatal problem unless you let it go; I just spliced in good wires.
Check the flame trap and it's hoses, too.