Hi gitapik,
In my opinion, any old car will be needing a good care after 20 years. So, I don't think it will much difference whether you have a 240 or 940 at this point. It will cost a fortune to keep these cars on the road unless you are taking care of it by yourself.
Based on your situation, I recommend 2004-2007 V70. It's just like a XC70 except it's not AWD. You don't have to get a set of four tires every time when you need new tires. Also, if your car ever gets towed, you will have a less chance of ruining the drive train. You can ask AWD forum for more details. They will help you more. Good luck.
If you decide to fix your 240. You can ask Dave/Volvo from Heck whether he can swap your transmission. You can just page him here. If you decide to do that, then get a rear main seal and tail shaft bushing replaced at the same time.
By any chance, are you married to Annie?
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