I have had a series of 700/900 Volvo's, including a 965, and currently have an 855 Tubo, a '98 Xc AWD, and a '91 745, all automatics.. I really liked the 965 for long trips, much more luxurious, powerful and refined than the other 700's we have had, although those were all really nice cars. Now that I am mostly running the FWD's (son has 700 at school), I realize that both the 855 and XC are just as comfortable and luxurious for travel, although the rear luggage space in the FWD wagons is clearly smaller than the RWD's. (passenger room in front and middle rows is just about equal, as is seating comfort vs: 965). Poor weather handling is clearly much better in FWD or AWD (MUCH beetter in AWD) even though I never really had issues with the RWD's with snows and sand bag in rear. 965 has limited slip differential so it is really pretty good in snow, just nothing as good as others. Gas mileage on trips was about 25-26 (US) for 965, and 28 on 855 Turbo, 25-26 on AWD (all on premium, which I find gets us about 2 MPG better on highway with full loads). The 855 does best around town, and 965 was worst with bigger engine always calling (still not bad, probably 18-19 in conditions where I get 21 or so in 855).

Handling is quite different among the 965, 855 and XC. 855 with high pressure turbo is by far the most sporty and actively fun to drive. The AWD is least sporty due to higher center of gravity and the feel-deadening effect of AWD - it just gets the job done with almost no sense of what is going on beneath you, even in worst conditions. The 965 was actually pretty good, but much more suppressed response feel than 855. 965 feels like a much bigger car on the road due mostly to the fact that the body is more square and you see out to the corners over a longer hood. The actual dimmensions and weights are pretty close, with AWD being heaviest due to extra mechanics.

Maintenance is sort of an open crap-shoot, IMO. Our 965 never had significant repairs through 155k, but was nonetheless a pretty expensive car to operate. It's big special risks seem to be a leaking radiator that leaks coolant into the transmission, causing very expensive transmission problems, and failing engine hydraulic lifters (about $1,000 US, mostly parts, I have been told). I think the lifter diagnosis is often a mis-diagnosis of a failing oil O-ring down in the sump, but on the 965 that is not insignificant either. Also, it has the same questionable AC as all of the other Volvo's. Otherwise, it seems to have just the normal range of maintenance and labor costs are less because of the spread out mechanicals versus FWD. Solid preventive maintenance is as always, critical for economical high mileage use.

On the 855 (and V70 FWD's) many of the routine maintenance chores seem easier to do and have longer intervals. When things do break, however, they are likely to be more buried and therefore have more labor hours to get at. My iompression so far, and including impressions from following these boards, is that the 850's are perhaps the best of the bunch for ongoing maintenance (no flames from 240's please - those and 700 have lots of little things to talk about too). The XC's only real difference is the AWD system itself, which clearly posses an added risk of significant repairs. However, there seem to be lots of trouble free AWD's out there, its partly that we only hear from the troubled ones on the repair boards. Aside from the dollar risk, I don't think I have heard of the AWD failing in a way that strands the car in the wilderness. Also, I believe that the statistical failure rate is less than 15%, although that is certainly enough to get your attention as a risk.

Overall, my wife absoultely loves her XC and it is the only car we have ever owned that she actually praises (mostly she ignores cars so long as they go every day without giving her anything to think about, so that is very high praise). My personal preference of the Volvo's we have had to date is the 855 Turbo. Note that we haven't got teh 855 ' 70's over 100k (miles) yet, but I have no inkling that they are not going to feel just as solid as the older ones as they do get there (aside from some of the XC / V70 interior door trim that do not wear like a Volvo). I would put the 965 third on my list, maintenance risks included, but still think very fondly of it. Even all three of my sons would take the 965 on trips over any of our other cars (the SL wasn't an option ;-) ) until the Turbo arrived, but that is their favorite now also. Best of luck with your choices
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Mike Sullivan ('91 745 (184k), '95 855T (70k), '98 V70XC (83k). Past Volvo's: '85 744 (256k), '86 245 (165k), '86 245 (195k), '88 745 (208k), '93 965 (147k) .