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I recently went through much the same thought process as you. I have a '98 T5M which is accumulating miles at a rapid rate, I found a very good price on a '99S 70T5A. Then Tom the Mullah's alias Toyota Tom's 960 engine saga began (the 960 has the 6-cylinder version of the 850-70 5-cyl.). I decided that to own two of these things at the same time is not something that any sane person should do.
Consumer Reports says "avoid" and if it's still up check "Kino Velez's Volvo Site". I've had most of the usual problems, except the evaporator which I'm dickering with my dealer about. It's leaking, the debate is over how much it's leaking.
Extended warranty - I've never felt the need to buy one of those before, either.
I decided to keep my T5 but not supplement it yet, and to upgrade my AAA to the "plus" with 100 miles free towing.
I do like my car when it's running well. Never before have I had a car which is both so much fun to drive and so much trouble.
I wouldn't suggest repairing a car with 300k on it either. I'd suggest either A.) Find a nice used low mileage '94 or '95 940T or B.) Buy a new Toyota Camry SE V6. It's close in size and specs to the 850-70 and the reliability is bulletproof. Change the oil often and drive it 300k.
My $0.02 worth exactly what you paid for it.
-Phil Punxsutawney
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