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I can't shed much light on the latest versions, but we have a '98 trouble free AWD (78k) as well as the list below my signature. In general, I think that AWD makes the cars somewhat duller in response - it is more muted. With the XC versions, they are also less responsive in absolute terms as well due to softening up suspensions, raising overall height and center of gravity, and running tall sidewall tires. Straight front wheel drive avoids much of this, although it is still not as light and nimble and tossable as the classic RWD in a well balanced model. My 850 turbo wagon is actually quite nimble, short turning radius, some front torque steer, but on the whole, a ball to drive versus XC. Newer Volvo's seem to have given up the nice tight turning radius, but the sportier models still give lots of good feel for the driver. My sister in law has a 2002 S60 T5 with 5 speed manual and she loves it. I don't think so much of the action of the 5-speed or the clutch action compared to say my BMW 325, but otherwise it is a very nice ride. Note: no Camry that I have experienced comes anywhere close to the driving responses of any recent Volvo, so you really need to go and drive a few.
From a mechanical viewpoint, these new cars bear no relation to your 240. Everything is crammed together and hard to reach due to front drive packaging. Also, my impression is that the newer the model, the less substance there is in things such as material thickness and durability (interiors, plastics, paint depth, etc.). Even my 850 has more durable interior trim than the V70, despite being essentially the same car. On the other hand, some of the routine maintenance chores are actually easier, and come less often. I would say that DIY maintenance is still viable for a variety of expected chores, but not as much as in 240 unless you invest in special electronics and tools. DIY'ing will allow you to deal with the various minor gremlins that seem to bug lots of the newer cars, and should make overall ownership much more satisfactory than for those owners who have to go to the dealer for each bad switch, etc. If you read these boards, it seems that quite a lot of the "issues" can be delt with pretty easily and cheaply (cheaper?) by a handy owner. There may also be a trend of early teething problems but getting more trouble free as they age (compared to others).
Anyway, that's my subjective thoughts on teh subject ;-)
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Mike Sullivan ('91 745 (171k), '93 965 (147k), '95 855T (60k), '98 V70XC (78k). Past Volvo's: '85 744 (256k), '86 245 (165k), '86 245 (195k), '88 745 (208k).
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