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Time to decide V70-XC70

So, I went to the local Volvo dealership today to look/ drive pre-owned vehicles. I am currently in an 850 wagon N/A, and wanted to get a V70...low milage. All they had were XC70's (2009-2011) and a V50. Drove the XC...nice, of course compared to my 850, it was a dream. BUT...fuel milage stinks! He was talking 17mpg round town...yech. I assume it's a combo of the weight, AWD. MPG is kinda important to me due to the economy and my wallet. But I do enjoy the comfort of the Volvo.
They want about $23K for these cars...some with one year left on warranty.
Questions:
-Any particular year to avoid in the XC70?
-Shall I just wait for the V70's, is there anything that's a 'must have' on the XC that I would not get on the V70...(It doesn't snow that much here on Long Island).
-I can, for $28K just get a new Outback with some bells and whistles...






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