1984 245, standard transmission (M46).
I believe that the rear axle ratio is 3.31:1, but not sure (label on diff. is illegible).

Tach reads just a hair over 2500rpm at 25mph in 2nd gear and about 2400rpm at 65mph in o/d. Thus, I suspect that it is a 3.31.

A little "tall" for my tastes. Is it just me, or is there a big "gap" between 1st and 2nd gears? Would a shorter gear (3.54 or 3.73) remedy this problem?

My 89 745T with a 3.73 final drive ratio turns 2350 rpm at 60 mph in OD with the AW71 trans. Note that people often mix up the rear gear ratio with the final drive ratio. My rear gear is 4.10, but my final drive ratio is 3.73 due to the OD reduction from the 1:1 third gear (AW71).

For driving fun, I recommend swapping to the lowest gear (highest numerically) that Volvo used in a rear that can easily be swapped (i.e., same speedo sender if applicable). With OD, a low gear is not too noisy and does not consume too much fuel. You would have to find something from the aftermarket to suffer really adverse consequences in those respects. One benefit of swapping, if you get the whole rear axle (which is the easiest way to do a swap) can be a limited slip or auto locking rear, newer rear wheel bearings, and newer parking brakes.

Philip Bradley

Hey Philip I heard you were dead or in another country according to a certain turbocharged volvo website. Whats up with that?
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Isaac Babcock - '83 245DL and '83 244ti, "Sounds to me like I am right.." -JakeJ

You must have installed the 4.10 ratio for better accelleration. Did you also install a LSD?

A different rear end ratio would not change the relationship between
first and second gears.
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George Downs Bartlesville, Oklahoma

What's it say in your owner's manual?

2400 at 65 sounds like 3.31....how about jacking the car and doing the rear wheel revolution method?
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www.fidalgo.net/~brook4