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Is this car a lemon? S60 2006

Nine months ago, my wife purchased a 2006 S60 2.4T with 41,000 miles on it. It now has 52K. It had a salvaged title due to a front end collision. She got it for $9K and the car's run great, is in beautiful shape, etc. I was VERY concerned when she brought it home as I didn't inspect it at all and she didn't have a mechanic inspect it either.

Cut to the present: We hit a pothole last week and since then the car has begun falling apart. That impact collapsed the rt lower motor mount and bent the torque mount. When it occurred the car lost all power and would not start again for a bit. The transmission then began clicking when shifting from 1st to 2nd. Our local shop advised her that a new tranny is in order as the valve body is binding. I checked the fluid and it's FILTHY! She swears she checked it before purchase but I don't think that's possible. I'm hoping a fluid flush will save this tranny. Could the impact have caused some kind of computer damage, too? I know 240s well, but given the massive electronics, this thing may as well be a space shuttle.

She attempted to start the car yesterday and it died. After researching this vehicle, this behavior seems common. A failed tranny at 50K? That's crazy! Should we get out while we can?

I have a '66 122 and a '79 245 and swear by them, but have now lost faith in new Volvos after this and other owners' stories.

Any tips, guys?

Thanks in advance for your help,
Kirk






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