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Take the car to a Volvo shop and ask them to do compression and leak down tests on the motor. At 125,000 miles, it should be in good health unless it has been neglected. A pressure test of the cooling system will be revealing, too. The condition of the turbo can be checked by removing some of the plumbing (hoses) and checking for play in the shaft.
I wouldn't rely on a visual check of the oil cap. Dark oil only means that the oil is doing its job of trapping contaminants and dirt. It doesn't take long for oil to change color after an oil change. On the other hand, clean looking oil just means that it was recently changed... But that could have been the car's first oil change in three years.
One big preventive maintenance item that you should do, if you buy this car, is to replace the heater control valve, the heater hoses, and the radiator. The control valve is plastic and has a reputation for lasting a long time then suddenly letting go. This failure, or failure of the heater hoses, can rapidly empty the cooling system and damage the engine. Similarly, the radiator has plastic "necks" to which the upper and lower radiator hoses connect. This is usually where the radiator fails.
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