I'd modify your 'avoid' list a little:
- 1999-2001 anything due to many problems. If you get a great deal and are willing to spend some time, you might be ok.
- VVT hasn't really been problematic.
- ETM has been problematic but is easily (though somewhat expensively) fixed with a reman unit from XeMoDeX.
- 5sp trans has been problematic, but is sometimes workable with software upgrades and careful fluid maintenance/restoration.
- Early AWD was a bit problematic, requiring transfer case fluid maintenance (which almost no one performed). Most problems are remarkably simple to remedy if you work at it hard enough, esp with the help of local driveshaft/transmission people.
- 2003+ anything is pretty good, with most problems with the ETM/Trans/AWD sorted out.
An extra note on S40:
- 2005 was 'redo' year. the -2004 models were not nearly as good as the 2005+. I have no information on the prevalence of 'first year' issues with the 2005. The new model looks substantially better and is considered IMHO to have less problems as well, though I have no references.
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1998 V70 AWD->FWD->AWD Turbo 220k+
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