That pretty much puts you right in the price range for a 97 855, 98-2000, and possibly a 2002 V70. STAY AWAY from 2001's!!! The first model of a re-designed line, they are known for transmission issues, among other problems. The XC's are good cars IF they have been well-taken care of, but if you don't need AWD, just go for a GLT (2.4 low-pressure turbo) or the top-line T5 turbo model...they're less trouble in the long-run, and they do just fine in snow/slippery conditions. The turbo's are about as maintenance-free as the N/A models; just check them for oil leaks and excessive whining.
99's and 2000's are prone to ETM-related issues, where the electronic throttle control module goes bad and causes the car to act crazy. An expensive fix if the car is no longer under warranty (you may want to check if it has been replaced). All are prone to ABS module failures, and leaky A/C evaporators...test the A/C and give the brakes a good stomping when you drive one.
Also, timing belts should be replaced at 140K for 1st gen V70's, so make sure that this has been done before you buy a car, or make sure that you take care of it RIGHT AWAY if it has not been. Check the color of the transmission fluid. Brown is bad. Pull the dipstick & check for smoky vapor from the oil tube...most cars of this age will need a PCV system overhaul if it has not already been done.
Sorry for the long list of things to check - by no means let this make you be wary of buying a Volvo; they are great cars if they have been taken care of by previous owners. You just have to find one that hasn't been neglected.
There are several in my area for sale for a few examples:
http://raleigh.craigslist.org/cto/1426359672.html
http://raleigh.craigslist.org/ctd/1388382265.html
http://raleigh.craigslist.org/cto/1393227076.html
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