Other than all the typical problems from the 850 (the 98 V70 is an updated 850), the AWD (especially the 1998, unfortunately) suffer from failures of viscous coupling and the bevel gear. My bevel gear failed at 85,000 miles. Dealer repair cost: $2,000. Various service bulletins warn you to ALWAYS use four identical tires and keep properly inflated and rotated. If you get a flat, you must replace all four tires. Differences in tire size can kill a bevel gear in short order. I was good about identical tires, etc., but my bevel gear still died.
Other than that AWD-specific issue, the 98 suffers from the following (which apply to both AWD and FWD Volvos):
* A/C evaporator has or will die ($1,100)
* ABS unit will need to be replaced ($600 at dealer, but Victor Rocha does for less)
* Oil drip from turbo return seal
* Air pump on engine will fail
* Power door lock system will fail
* Motor mounts will wear out (top and bottom)
* Thermostat will fail (hopefully it will fail open and not closed)
* Gasoline filler neck may leak (mine did)
* Auto tranny may fail (mine did at 76,000 miles)
* My driver's door window switchpack failed
* driver's and passenger's seat belts retract slowly, and will get caught when you close the door, breaking the little red "puddle lamp" on the edge of the doors
* Sensors may fail (oxygen, barometric pressure, etc)
* idle "skip and dip" phenomenon can be fixed with a sofware download by dealer
* bulbs burn our frequently (including dash bulbs and shifter illumination)
* various squeaks and rattles
The good news: the 98 does NOT have the "drive-by-wire" electronic throttle system, which leaves drivers stranded with little notice (sometimes on the highway!)
Good luck. It looks like a lot, but I'm sure you can handle it!
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