Terry,
My wife and I recently purchased a 1997 850 wagon. We love it so far, but it's obviously too soon to tell how reliable it will be. I'm no expert (and I stress that point!), but there seems to be a short list of common problems with the 850s that you might want to become familiar with before buying one. Check out the website below for details on the common problems:
http://home.att.net/~kino.velez/volvo/index.htm
Our car is a true joy to drive. My wife and I both love it, although, in the past 1.5 months and 1000 miles (the car now has a total of about 55,000), we have had to deal with a few minor little imperfections. The rubber trim between the windshield and the roof came loose on both sides of the windshield. Apparently, the trim is held down by double-stick tape that doesn't hold up very well. We also have a humming (or moaning) noise that sometimes occurs in the front right of the car during the last few seconds of braking. With the help of the people who use this forum, I finally figured out that it's the blower motor and not the brakes! Very strange. My friend's '96 850 has a blower motor that makes the same moaning noise when taking off from a stand still, but NOT while braking! Bizarre. In both of our cars, the noise occurs only when the blower switch is in the first position, so I would definitely drive the car around with the blower on (sounds strange, but...).
Also, if you plan to put a car seat in the middle position of the back seat, you should be aware that the you probably won't be able to use the seatbelts on the right side of the car in the back. Annoying, but that's the way it is.
Make sure to test the air conditioning. A/C evaporators have a tendency to go bad on the 850s and they can be very expensive to replace. Plus, replacing one once does not ensure that you won't have to do it again in the future. The website that I posted the link for above contains tons of good info about the A/C evaporator problem.
Check for abnormal tire wear in the front. I've read of 850s that eat the outside edges of front tires even when perfectly aligned. Our car has a lot of wear on both edges of both front tires (which have now been rotated to the back), but I think it was probably due to underflation.
If the 850 you're looking at has a power driver's seat, check to make sure that the seat-back moves up and down. From what I've read, the cable that drives the seat-back has a tendency to come disconnected. While you're at it, check the seat-back for abnormal rocking (ours seems pretty loose).
We have a dash light, behind the heater controls on the passenger's side, with an intermittent connection. If possible, I would try to inspect the car in a dark garage or something so that you can check to make sure that all of the dash lights work (they can be expensive to replace given the work involved in removing the dash).
Good luck with your purchase. I think the 850s are fantastic cars, and I plan to drive ours until it just won't move anymore -- which I hope will be a long way off!
Best,
Aaron
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