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Hi Andrew,
I suggest doing a thorough search for the source of the leak before proceeding with anything else. A leak is NOT necessarily a death sentence for the rack!
First, I would check the 2 hoses from the rack that connect to the PS tank. The most likely leak location is the soft rubber low pressure hose. Make sure it is attached securely at both ends and it is not deteriorating and leaking at either end. My 90 240 had a slow leak in that low pressure hose. I've also seen a 2003 V70 leak in the same location. Easy fix if it is this hose!
The other place to check would be the rack seals. Take the car for a drive then get underneath and look where the inner tie rods connect to the rack. If you see fluid leaking out in that area then it is a pretty good bet that the seals are leaking. My 95 850 (wagon) developed a leak there about 5 years ago. It was a slow leak so instead of replacing it I decided to flush the fluid using the turkey baster method and slowing replaced it with synthetic ATF. After about a month the synthetic did its thing, cleaned the seals, and the leak stopped! I have to do the flush about every 2 years but the original rack and pump are still going at 251k! Your call on the synthetic but it worked for me...:)
Good luck and Happy Holidays!
Jim
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