Thanks to all you guys for the input! You were all correct, and my mechanic stopped inspecting the car after he found $1700 worth of repairs needed. When I took it back to the dealership, they argued with me about it, the salesman said the inspection was bogus, even though it's the same mechanic he uses for his Bentley. The boss there said "I'll go halfway on that", so I asked, "You mean you'll sell it to me for $5k?"...nope, he wanted me to give him the inspection report, and claimed he'd fix everything on it, but still sell it for $10k. Needless to say, I didn't take him up on that.
We'd taken the whole day off from work, so since we had a few hours to kill, we decided to go check out this place that I remembered from when they were next door to my mechanic's shop. He takes his cars in to my mechanic for inspection/repair. I test drove a '99 S80 2.9, liked it well enough, but that one hadn't actually been inspected or repaired, and between the bald tires and uneven wear on them, I wasn't impressed. Tried out a '99 S70 AWD, couldn't find much to complain about...he'd had it repaired, and showed me the documentation for what was fixed, and what it needed (rear rotors). Again, same shop did the work. I decided that the little things didn't bother me (right turn signal bulb burned out, dead batteries in the remotes, antenna snapped off, a little wear on the driver's seat, small tear in driver's door, missing cap for the washer fluid, hinge on console compartment half broken, and one piece for the cup holder missing). I looked at the timing belt, it appears to be in great shape (must have been replaced, I think).
I bought it for $6k, got my insurance coverage taken car of, bought new bulbs (no tool required bulb change is awesome!), and remote batteries, and filled the tank. Took it out to Lake of the Woods county park to take a few shots.
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I think I did OK on this one. Again, thanks for the advice. I might have bought the S80 at that price anyway, if it'd come out with no repairs needed...but probably would've regretted it.
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