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Check out the FAQs under the pull-down menu above, including the "Buying a Used 7xx/9xx" section.
I'd avoid the 16-valve 4-cylinder and the V6. If you find a 760 with the 4-cyl B230FT turbo (usually says "Turbo Intercooler" on the trunk or hatch) it's probably "OK'. I considered doing what you are for my teen, I was warned off about the 760, even though the one I was looking at was a 4 cyl. Although it may look like a well-equipped 740, it's "more" (or "less", depending if you're enjoying it or paying to fix it) with lots of power gizmos to break, a sunroof, automatic climate control, power seats, and the much-feared IRS with the more-feared Nivomat shocks (read "$$$$"). Even the firewall is different (because of the automatic climate control).
The "ultimate" RWD Volvo to look for is the 1995 940 Turbo, it had the better reinforced engine block, oil-cooled pistons, dual airbags and only the '95 had a glass moonroof. Most '94-'95 940 turbo wagons I've found have been thoroughly trashed, it likely means that if someone has a good one he/she is reluctant to part with it.
Don't take a 960 even as a gift.
-Punxsutawney Phil
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