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I have a 97 850 turbo wagon with 155k miles and a 98 V70 AWD turbo wagon with 165k miles. I bought them well used and neglected, and I have done all work on the 850, mostly suspension (all new control arms, spring seats, struts, strut bearings, and a couple of engine sensors, sourced from junkyards) for less than $500. OTH, the V70 has been to the shop as the wife drives it, and I have spent maybe 4k, including a sizable portion on replacing the rear driveshaft and re-sealing/changing fluid in the bevel gear box more than once...and then the headache of replacing all four tires if you ruin one. Done that twice.
If those are your only options I'd go for the 96 850, but a nicer buy would be a 98 V70 T5 or GLT, without the AWD if not needed. The interior was much improved in my opinion.
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