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I would say go for it. We just bought our first Volvo (previously owned 4 VW's, 3 Fords, 2 Suzuki's, 1 Dodge, and 1 Datsun - still own a Neon & and an Escort), it is a 1990 240 Wagon. It was also a one owner car, with 210,000 miles on it, most of the service records, and in very good shape. We paid $4000, so I think $5500 for a low mileage 240 would be very fair.
We've put 4,000 miles on it in the last few months, and had the timing belt break, and a tire blow out (debris in the road), but overall I am impressed with the car. Lots of room, acceptable power, well balanced chasis (50/50 weight distribution), decent gas mileage (24-25 mpg), and built like a tank.
Good Luck
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