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A 'substantial amount of rust' is not good. I live in the mountain of NY and neither of my 850 have any rust to speak of. Basically, it is hard to find a rusty Volvo - look around, maybe you'll find an early '80s with a little.
At least do carfax.com to check history, well worth the little it costs. Flood damage good bet in this case. They are totaled by insurance companies, sold at auction and end up on dealer lots after minor repairs. I almost bought a car the was a stolen in Texas and recovered in NY. Although flood damage does not always show on Carfax. Where flood damage shows is many wierd electric problems down the road.
Avoid this car, if too good to be ture... it is!
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