When you step on the brake (key on) do you feel a click in the shifter?

There's a shift interlock. Unlike earlier cars, you aren't supposed to be able to move the lever on a 91+ 240 without your foot on the brake. A solenoid holds a lever into place to prevent you from moving the shifter. It's actually holding in a piece that prevents you from pushing the button down.

You've either got a broken one that's been rigged to work while broken, or a piece of broken plastic perhaps is wedged into the release for the shift lock.

If you want to fix it, a new solenoid is available from Volvo. If you want it to go away and work like an older car, where you're responsible for the movement of the shift lever yourself, then you can remove the shifter cover and break out the yellow piece of plastic- or at least snap the pin off the end of is so it won't interlock the shift lever anymore.

Any other issues with alignment of the lever to the actual gear position, or free movement of the lever indicate a need for shifter bushings or possiby a failing shift linkage.

Good luck with it!
Good luck with it!
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::: Rob Bareiss, New London CT ::: 92 244 ::: 90 745GL ::: 90 745T ::: 84 242DL ::: 90 745T Parts ::: Used to have : 86 244DL, 87 244DL, 91 244, 88 244GL, 88 744GLE, 82 245T, 86 244DL, 87 244DL, 88 245DL, 89 244DL!