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Obviously, if the dealer has a bad rap, avoid any cars. I had a 97 850, and the AC went out around 110,000 miles (condenser rusted out, $1200 repair b/c the labor to tear apart the dash). If you get an 850, be sure to allow the fan to blow with the AC off for a couple of minutes before turning the car off - this will blow out the moisture that causes this to happen.
Also, about the same time, I had a very slow oil drip from the engine. Turned out to be a leaking rear main seal (also >$1000). This was caused by a gunked up flame trap, the backpressure blew out the seal. Gotta replace those every once in a while.
The 97 was the only year Volvo decided to replace the metallic rotors with carbon rotors (the ungineers had too much Finlandia that nite!). Carbon rotors don't need to be turned, but when they wear out, fork over the bucks (I think mine was like $400). The 95 has normal metal rotors.
The turbo has no flame trap fortunately. But turbos can be finicky, esp, for a teen ager. I'd probably go with the 97. A friend of mine has a 95 turbo with 140000 miles, no major problems to report. My 97 had over 120000 before it was totalled by a 90 y.o. man who pulled out in front of me (airbags never went off, I guess that speaks to how well Volvo integrates safety into construction).
After that, I bought a used 96 turbo. I now have 215000 on it, and it is happily chugging along (and blowing people off the line, much to their dismay!)
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'96 855 Wagon, 200k (and formerly 97 850, 120k)
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