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It seems that you're rather stuck with a Volvo buyout.
The C70 has had many quality control problems, and it's a
good thing that VCNA is offering to buy it back from you.
After 21K miles on my '99 2.9, I have had a few problems
that were promptly repaired - ball joints and mass air flow
sensor to name two biggies - but all in all, the car has not
had a lot of problems.
On the other hand, it has a few maddening design flaws that are
apparently uncorrectable but that I have never seen in any other
car. For example, the front seats rock about 1/16". This is due
to pivot slop that was DESIGNED IN to the car! There is even a fix
consisting of a rubber bushing to minimize the impact sensation for
"drivers that are bothered by it".
I agree with the previous posters that the S80 is a very nice,
comfortable, and competent car, but not in its class, and fails to
deliver on many of its promises.
As a point of comparison, we recently purchased a Passat V6 Wagon.
It handles better, has excellent interior finish work, is MUCH quieter (road and engine noise), has NO torque steer with greater engine torque, and cost much less. Of course, it is in a different class, but
if you compared it to the V70, it would win in almost every category
except seat comfort and, maybe, interior styling.
I would recommend that if you must accept another Volvo, that you
go for the V70. This type of car is what Volvo knows how to do best,
and represents a more reasonable form factor than the S80. If offered the
T-6, decline. The 2.9 is the largest engine that the S80 suspension, frame, and transmission can reliably handle. Don't go for Volvo "T" series
models, since they typically have way too much torque for the suspension
to handle. For resale, a Volvo wagon will win out over a sedan. I can't see the S60 holding its resale value against competition like the 323 or A4.
I'll probably look towards the Germans for my next car - maybe the 2002
A-6 when its out. But given their outrageous prices and the high cost of parts and service, I may return to the "upper-middle" sector of the market, since it offers just about everything the luxury class does without the markup.
Good luck...
Shaun
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