I am shopping to replace our 98XC which was totaled a couple months ago. Was interested in the newer design;find it much more comfortable.Anwway I've found a 2001 with 21000 miles for sale by a private owner.IT is in great shape. Will have my mechanic inspect it this week. A concern I have is the warranty will expire next April. Should that be a concern? Should I consider buying an aftermarket warranty?Have heard some not great stories of some of those companies.
Also I know the coupling was changed that year to viscous.Does that negate the need to replace all tires if one goes?

I just bought a 2001 XCV70 with 70K on it. I love it. I replaced the oxygen sensor because it set a code about a week after I bought it. I did not get a warranty. A couple of years back I bought a 97 850, T-5 with 70K. I have over 100K on it and no problems. The engines are very close in design, so I am not too worried about fixing stuff. I did not buy it from a Volvo dealer. In talking to some Volvo service folks, I have found that the 2001 XC 70 seems to be a pretty good year. The XC is a replacement for a 97 4-Runner that I gave to my daughter. It is so much more comfortable/more car and I paid less for it than I paid for the 4-Runner in 98. This is my 4th Volvo. I still have a 740 GLE with 196K on it! Good luck with the XC with only 21K. I wish one like that had been available to me.

As for the AWD system, you're wrong. It was unchanged from '98 to '03 so if you want the better system, you need a newer AWD Volvo. You'll be better off with a FWD V70 IMHO, fewer problems.

Unless you *want* AWD, in which case, get the XC :)

We have 40K on our '01 XC, no problems. It's been on long trips, short trips, even off-road.

The AWD works great. The XC is my 7th car with 4WD/AWD and I would not consider buying a car without it. Don't let anyone tell you that 2WD, even with traction control, is "almost" as good--it's not. Either you have traction or you don't. Traction control can't get you traction if it's not there. To get stuck with AWD, all 4 tires have to lose traction at once. With most 2WD, unless you have a limited-slip differential, only one drive wheel needs to lose traction for you to get stuck.

All AWD systems are more expensive to maintain or repair and all AWD systems require you to keep all tires very close in size or the system will not function properly or can be damaged.