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Howdy, I've got a '97 850 t-5, and my mom has a '98 V70 with almost identical equipment (wagon, cold weather package, etc..). I drove my mom's quite a bit in HS...
Overall, strangly enough the interior of the 850 seems to be holding up better than the V70 and it's a year older, the car as a whole seems a little bit more solid - literally. The suspension's a little stiffer, the doors seem a little heavier, that kind of thing. I also like the styling on the 8 series.
Performancewise the 70 (w/light pressure turbo) is actually faster around town as the turbo spools up quicker, however at highway speeds the 850 series has gobs of power (for a volvo anyway), and really shines passing or just going quickly. side note - the 850's governor is set at 145 i think, the V70's is 127, indicated :-) I don't know if you care about that sort of thing...
For winter, I'm originally from SD, the V70's AWD is a HUGE plus, in addition the car seems to have less torque steer for some reason... The back wheels do kick out at anything over 25, not a true AWD car. Here in CO (springs) I haven't noticed anything that would neccesitate anything more than a FWD car, but hey it's your call.
Overall I recommend the 850, it seems that fiver years or so of the same model finally got the quirks out, as the 98 V70 was the first year it came out. But if the AWD, quicker intown acceleration, and softer ride is worth a somewhat quirky car and a little bit more money, by all means go with the V70.
Haha, I might add that in my recent search for a vehicle my parents did offer me the V70, which I turned down for an older car, worth about 60% as much, so I am not biased just because I own an 850.
Nate
91 740 wagon -> 97 850 wagon (I don't know, there's something about these soccer mom cars)
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