I haven't had any problems with my '99...Wish I did so I could complain. So here's my buying suggestions:
1. Can you keep four tires properly inflated?
2. Are you willing to replace all four tires on the remote chance you ruin a tire before all are worn out?
3. Have warrenty repairs (i.e., bulb replacement) been dealt with? (None of my bulbs blew, but Volvo had a recall and replaced the headlights and side turn signals because some were burning out prematurely).
If you can answer yes to all three questions then get ready to enjoy the safest, most practical snow cars you can buy with all the amenities.

Switched from a Subaru Outback ('96, 2.5L) to a '99 XC. Had extended warranty (100k) on both vehicles.

The Volvo offers higher performance, a better ride, more creature comforts (I'm 6'2" and 275 lbs. Goes through mud, sand, snow (less then 10 inches, more then that and it tends to snowplow), rough terrain, etc.

Problems:
1. Oil leak traced to turbo, turbo replaced at 75k miles
2. Ongoing problem with front tires scubbing off tread on either the inside or outside of front right tire.
3. Front struts replaced under warranty due to shock mounting strut breaking at 90k miles.
4. Drivers window control box replaced due to faulty switch at 80k miles - known problem.
5. Exhaust pipe weld to connecting flange at turbo broke, 105k miles (whoops, out of warranty!) Car is currently still inoperative.
6. Rear disk brake pad cracked and then seperated from backing at 20k miles. Replace rotor and pads, of course, not covered by warranty even though the pads where only at 80%.

Except for items 1 and 4, all of the other problems can be directly related to my driving conditions of over 100 miles per day, 5 miles of which is a very rough dirt road.


The Outback handled better, got better mileage and was able to handle snow up to 16 inches. Due to it's weight being less then the XC, it also handled better. Oh, and in 100k miles, I never got to use the warranty!

Would I buy another one(?), not sure. I like the power and the comforts, but compared to a stock Outback, or even my old Izuzu Amigo 4X4, it feels like a pig going through twisty mountain roads even though it sticks like glue. With the Outback, you simple drove it like a rear wheel drive vehicle, brake going into a turn, set yourself up, and then accelerate coming out, feel the push from behind, no fwd torque steer. With the XC, you have to drive it more like a front wheel drive, keep the gas on while in the turn, so that the front pulls you through the turn, but don't overdue else the steering starts to disagree with your input.

By the time this thread is finished, you will have more opinions than you will have ever wanted! It's a very hot topic here on the board. Either I am lucky, or my maintainance & mechanic are better than most...here's my list of problems with my 98 R AWD wagon:

Just to repeat, in case you weren't paying attention:

I have also modified it, and still no issues. The same can be said for my 94 854 turbo, and 92 740 wagon.

Get a complete maintainance and ownership history on the car, you will quickly see how it has been serviced.

Wills
--
98 R Wagon IPD ECU, 2.5 Dual Exhaust, Dawes MBC

I have a 1998 XC and have had one problem after another. While I feel the safest I've ever felt driving any car, it's lack of reliability has made me decide to switch back to either a Toyota(Sequoia-more expensive than XC) or Honda (Pilot-much less expensive than XC) product with far superior reliability.