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Was the interior and exterior exceptionally clean?
Has the transmission been replaced recently? (270K is definitely near the end for that area.)
Piston rings and crankshaft bearings are probably showing measurable signs of wear.
Clutch, turbo, engine oil seals...?
Brakes, tires...?
If most of the car is original or less than very new, then your car fits in with all the other Volvos, making it "average" in value.
The head gasket is "normal wear" and the wiring harness is something that shouldn't go wrong with any car in its lifetime (a Volvo boo-boo).
The one thing you might be able to fight for is replacement cost, to buy a similar year and model vs. "Actual Cash Value" used by insurance companies.
I checked the Kelly Blue Book (www.kbb.com) and you can probably convince them that the value is closer to $3k. Use both trade and retail to get your value.
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