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Clear coat can be interesting.
I bought a 6-year old '96 855R in Fire Red.
For the first 10 years or so, I waxed it twice a year, and it looked great.
One year, I did not do my springtime wax, and about 1/2 of the panels faded.
The roof and most of the right side faded and I could easily see that the other panels had clear coat on them.
After I polished the car - the faded panels put red on the rags, the clear coated panels did not!
The car came out looking great, and a few people that I asked could not pick out the clear coat panels!
Most info on Volvo paint that I have read relate that solid colors have no clear coat, and metallic colors do.
However, if your car was repaired, or repainted, it could indeed have clear coat.
I have a '90 745 in a burgundy metallic that obviously has a roof and hood that have clear coat that has faded away, and is white around the edges.
I am sure that any method that you use will take more color off than clearcoat because the clear is tougher than the color.
In my case, I plan to have the roof and hood painted, perhaps in a some shade of brown to create a two tone look.
Medium blus might look good on your car, and last longer in your sun. If you do the sanding and there is simple masking, a small shop may paint it for a reasonable price. Make sure you sand with a long, firm block, so that you take the high spots off first.
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