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In my neck of the woods that would be a decent private party price for a '06 V70 base. The body damage would drop it lower, but offset by low mileage and a good service history - to the right buyer.
Play hardball on the price given the body damage and unknown condition of the engine; how long was it run after the catastrophic loss of oil? You'd be taking your chances on that.
Is your '07 on it's last legs? What makes the '06 so much more attractive than the car you already know/own?
-Will
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XC60 / Odyssey
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