I have owned two 98 V70 T5's since 2000. I have followed this board since then and have noticed that most all of the problems that others have had, I have eventually also had. I take comfort in knowing what to expect and what to look for, so most of the time, I am not surprised. I did most of the repairs myself, except the timing belts and the rear main seal. I currently have 168000+ on the car. Between the two cars, I have logged around 130,000 miles with just me driving (I purchased both of them used). I have replaced:

steering rack
radiator
abs/tracks module (twice), once new oem and one rebuilt by Matty Moo on Matthews Volvo Site for $50;
Heater core;
Expansion tank x 2;
Strut seats;
Oil cap gasket;
Upper motor mount (3 times)
Rear Motor Mount
Fuel Filter x 2
PCV System (IPD kit)
Intercooler hoses (IPD silicone kit)
Rear main seal
driver's door window switch;
pnp switch
cruise control vacuum switch
Two timing belts
tranny fluid flush
Lots of rubber elbows on the vaccum system and all the rubber tubing
MAF sensor
Rear cam seals
turbo oil return line gaskets
Lots of rotors and pads
Fuel pump relay;
multiple cabin filters;
coolant level sensor;
washer fluid level sensor;
Front cup holder;
J hoses;
tailgate repair kit (long since failed for the umteenth time)
various coolant hoses

Plastic parts are getting brittle and breaking as the car ages. The front struts are worn out. The leather is a bit worn in places. I think it will go to 200,000 miles, maybe more. It is still fun to drive, stops great, accelerates well, gets reasonable mileage and has comfortable seats. I've had an upsolute chip in it since 2003. It's not great to look at, but it somewhat dependable, and there is no car payment. I'm way beyond caring what people think about my car. The few hunderd dollars it costs me every few months to fix whatever is wrong with it is far less than a car payment. I purchased a used "service" light reset tool for $50 and have learned to ignore the check engine light that comes on all the time.

I have no experience with the AWD, but the FWD T5 is a lot of fun to drive especially with the chip. Plus it is a safe car as I crashed the first one hitting a guy at around 50 mph who turned left in front of me. The car was crushed all the way to the firewall, but my family and I walked away with no serious injuries. I bought another one a week later.

John K