Joe,
The rim width should be clearly marked on the outside of the rim around the hub. If you have the same factory aluminum wheels I have on my '96 850 Turbo Wagon, you should see the following indication: 6.5Jx16 The 6.5 refers to a 6.5 inch rim width.
I recently went through the same issues on tire upgrade. A few things to consider:
* if you are going for any tire wider than 205 or short than 50 series, I think you will find that the tire manufacturers minimum wheel width will be wider than 6.5 inches. For example, I looked into a set of 215/46/16s but found they required at least 7 inches if memory serves me.
* load range. Although you won't find this in the Volvo literature (it isn't in your owner's manual or tire pressure info on your gas flap), you will want at least an 87 load range rated tire to safely cover the weight of your vehicle when fully loaded. By the way, the 87 rating was posted by a Volvo engineer awhile back on the Brickboard. Most (if not all) 205/50/16 and 205/55/16 tires will be 87 or higher. However, wider lower profile tires often have lower load ranges
* tire diameter.If you go up to 205/55/16 you'll have a few % higher diameter (a good web site to calculate and compare tire diameters for you is at http://www.powerdog.com/tiresize.cgi/). The taller tire will ride more comfortably if that's what your after, but you'll lose some acceleration capability and you may find the handling less sharp due to the taller tire sidewall
* tire width. I've seen a variety of postings on the brickboard that suggest (at least for 17" tires) not to go over 215 mm width or you'll have clearance problems. From a performance standpoint, going from 205 to 215 width tires isn't a huge advantage anyway, and the tire quality is often more important than minor increases in width.
In the end, I stuck with my stock rims and 205/50/16s. One problem is that the 205/50/16 is not the most popular size on the planet, so tire selection is a bit more limited than for other tire sizes. For a relatively low cost, but not super sticky tire, you might want to look into the Yokohama A 520s. They are a little noisy however. If cost is no object, from the reviews I've seen on TireRack the Michelin Pilot Sport is the best high performance tire you can buy in that size. That is the tire I recently bought (but haven't driven on yet as we are still covered in snow here in Canada).
Garth
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