FYI my 1990 which has 280K miles on it has always made some top end noise so the son is probably being honest. Don't forget these engines use solid lifters. I really perfer the black cloth interiors so that would be a plus for me. Car would also have to be a non-smoking one.

Spend the money and have a COMPETENT Volvo mechanic look the car over. I cannot tell you how many times I have had customers bring cars into my shop for the POST purchase inspection and found out that what they bought was really a can of worms. The badge is normal it was in place when those cars rolled off of the car carrier at the dealership. I should know, I PDS'd a bunch of them. They were nice cars, simply the last of their line, other than the nice alloy wheels and the badge they are no different from any other last year model 240.

If you like it, buy it. The price is not out of line, as long as the maintenance has been kept up.

I bought my '92 at 118K after retiring my rear-ended '88 at 250K. I was initially worried and perplexed by the piston slap when cold and some valve noise, but when the valve cover came off everything was nice and clean and I re-set the valve clearances when the VX cam whent in. If you remain concerned, the seller should allow you to have a mechanic look it over.

The spiking temp gauge is likely a bad temp compensator board - much has been written here about solutions, so just do your research.

Good luck, and post back here with your decision.