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Volvos seem to hold their value pretty well, so this isn't a bad price point to start negotiations.
If you're asking if I'd favor a 1996 855R over any truck-based SUV the answer is "YES!"
Vs. a brand-new 2003 BMW X5, well, that's a different question.
Most FWD Volvo people readily admit that the "new" designs seem to be more trouble than the older RWD designs, however there is no way the older designs could pass the current safety and environmental requirements, both here and in Europe....
Volvo's probably no worse than Audi, VW and SAAB.
If there's no hidden disaster lurking in the 850 (like it needs a new engine or transmission or there's a poltergeist in the electrical system), you're used to Volvos so you shouldn't be disappointed with the 850. See Volovspeed http://www.volvospeed.com/bay13.htm and Kino's Volvo site for the usual trouble spots http://kinovolvo.velez.ws/ .
After 102,000 miles my '98 V70T5m still uses no oil in between changes, it's still fun to drive and I hope to keep it for a few more years. I would have liked it if it were more reliable, particularly the electrical components, and there are a number of things that I would have designed differently (see Volvospeed and Kino's website).
It's encouraging that they left the service log and receipts in the glove compartment. Get your Volvo guy's opinion, of course. Consider changing the timing belt too, not because of miles, but because of age and if it snaps it's an instant disaster.
-Punxsutawney Phil
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