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Much like you are contemplating, I bought a '98 V70 T5 with 93k miles. For the past 3 years, the car has been wonderful with no major problems. Now maybe that's because they were fixed before I got the car, but I have put over 30k miles on it (including several cross-country trips) since then with none of the nightmare scenarios others have posted about and have never been stranded. My ABS module gave out this year, but thanks to the great info on this forum I was able to have it repaired (including removing/installing it myself) for less than a quarter of the cost of a dealer replacement.
Rountine service items are catching up with me. I will be spending about $2000 this year for a variety of longer-term mnx items including belts, shocks, tires, fluid flushes, wires, plugs, etc. Not out of the ordinary for any car this age, but they do add up--still cheaper than new car payments though.
Disagree with staying away from turbo models--the turbo is probably the strongest piece in the whole car. Read the forum--posts about turbo failures in these engines are rare. The extra power (over 60 hp in the T5) is well worth the very small risk of additional problems. At least promise yourself to test drive examples of non-turbo and turbo (both low and high pressure). Either way the cars are safe, solid, and comfortable for around town or long distance. Good luck.
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Scott - '98 V70 T5M
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