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I would say a qualified Yes. From what I have gathered informally over the last few years, the earlier the manufacture date the more problems. (Alas, mine was built in 8/1997!)
Whenever you ask such a question, you are going to get a range of responses. Even with the votes in, it's difficult to assess the responses. For example, I have very little good to say about my 1998 V70. Now you have to decide if:
i.) I am a whiner;
ii.) I pulled an unlucky draw from the distribution; or
iii.) the car is basically a lemon.
(I am still trying to figure out that answer myself.)
As far as your purchase, I would avoid it unless it's a very good deal. Go another year newer and many of the problem components were redesigned.
If your still thinking about it, find out the ABS module was replaced. The original was very prone to cracking and cost $600+ at the dealer to fix.) Also, find out if the air-conditioning is OK. I guess the compressor wasn't the best.
Were all the factory recalls done? (I believe secondary owners can still take advantage.) Expect that you will have continued problems with automatic door locks if kids or ice are in the picture. (The lock is actuated by a plastic part that would have been failed by McDonald's toy inspector...You have to have a kid and go to McDonalds to get that one.) Underneath all of the problems, the engine and body are still solid.
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