Similar problem was diagnosed and replaced on my '97 850R with only 42000 miles. Fortunately my car is still under Volvo warranty plus extended Volvo warranty. The rear main seal was leaking like almost nothing but my service manager pointed it out. So I told him to do whatever was necessary including new front ball joints/bottom A-arms. Total bill to Volvo was a little over $1300. I would suggest to fellow bricksters to have that rear main seal replaced while car is still under warranty. It's a lot bills....
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