I believe that the '98 AWD system was used until at leat the 2000 model, although I am not sure. I believe that the AWD problems were fixed when they switched to a Haldex system.

I had a 98 V70 XC and the AWD system broke. It took over a month to get the part from Sweden and then $1,700 of my money to fix. The $1,700 was a bargain, compared to the initial quote of $2,200.

The AWD systems of this vintage suffered from a need to keep all four tires exactly the same (including wear and air pressure). I tried to do this, but the AWD system died anyways.

If you don't need the AWD, then get a FWD from 1998. You will still probably have the following problems, but at least the AWD system won't fail!:

* A/C evaporator will leak & be replaced: $1,000
* ABS controller will fail: $200 to repair, $600 to replace
* Engine mounts will wear out
* Oil will leak from turbo return seal
* Window controls on driver's door will smoke and fail

I am sure I have forgotten some. Good luck!
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