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If the oil level was that low, I agree with the mechanic. You need to contact Erievovo.com by phone and ask for a good price including shipping.
By all means, a new clutch and rear main seal is a good idea. Along with new oil separator and all new vacuum lines.
Going turbo will be costly. Not only will you have to buy a turbo, intercooler, different vacuum lines, engine wiring harness, computers, air cleaner box - and the list goes on. Your manual tranny is quite capable with the current engine, faster than the light pressure turbo with an automatic.
Ask your mechanic to break down the cost for you. Pulling and reinstalling the engine/tranny just to do a clutch is about $1500 in labor depending on the hourly charge.
Or, LOL, you could wait a week or two and buy a 1998 V70R for $4500!!
Klaus
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Two great Volvos, a 1967 220 and a 1998 V70R
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