Personally, I would research the ETM (throttle module), and not buy a car with the one that experience premature mechanical failure. The problem is, when Volvo replaces them, the replacement is of the same design. Thus the replacement can fail prematurely as well. They have a software patch, but the software just masks the premature degradation of a mechanically worn part. Somewhere along 2002 they changed the design completely to a Bosch unit.

As far as AWD, a lot of people complain about the bevel gear and rear driveshaft somewhere along the '99-00 timeframe. The expense is huge, and it sounds like many people just remove the parts and leave it as FWD.

If you want an AWD for your part of the snow belt, go for an 03 or 04. Just check that the spare tire has never been used, extensive wear can cause the bevel gear to come loose internally.
If you don't really need the sure footed traction of AWD (I love how mine works) then get the FWD in a T5 version. Better yet would be an R with a manual tranny.
All of these new cars have DIY restrictions because of the software download requirements. If you have a good independent, ask for advice on what he can handle. These cars are NOT lemons, they just need to be maintained. On that note, stay away from 1999 & 2000 :)

Klaus
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The 164 has a new home, all I am left with are a 95 854T and a 98 V70R :)

I recently jumped into the FWD fire myself.

Just from hanging out at the Volvo indie's shop for the last year and from two months of my own FWD experience, here's my take.

AWD is significantly more complicated, both in the drivetrain, and in little stupid stuff you wouldn't expect, like fuel filters. You will certainly never replace a bevel gear in a FWD to the tune of $2500, because there is no bevel gear. Plus the mileage is worse. I chose FWD, and we got 12" of snow on the ground here.

I can't remember which year, but the cars went to software in either '99 or '00. Software is the death knell of the shade tree mechanic. Some indies can install software but the idea is to drive business to the dealer, as Volvo charges dearly for the downloads and the equipment is several grand as well. Bad climate control module? Needs new software upon replacement. Transmission shifting weird? Needs new software. The mechanic gets charged for software, but in the end he doesn't pay for it, you do.

Maybe in ten years we'll be looking back on software like the old school carburetor guys look at LH 2.2 now.

I bought a '97 850, because it was cheap but I think maybe the V70 might be a better car in '98, just because of the general trend to improve things every model year and generation.







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Volvo Farmer.

24 Volvos, '58-'97, all RWD, except the 850 t5