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You've got a few options, depending on your likes/needs:
1. Manual transmission n/a 245: With a manual it won't be quite as sluggish as with an auto, and as a 242 owner you're already familiar with all the 200-series' unique issues. You could even invest in things like a larger exhaust system, VX3 cam, and cold air intake to increase the performance a little. But, since they're comparatively rare you might have to settle for not-quite-what-you-wanted & end up having to put a lot of $ into it to clean it up.
2. 1993-1995 945t: These cars, even with turbos, are rocks. There were quite a few improvements made to the turbo system between 1982 and 1995! If you find one that's been well cared for I would be surprised if the turbo caused you any pain/money for a long time. Also, you get the pinnacle of Volvo's 4-cylinder RWD platform. The 1995 945t in particular is highly sought after. Downside is that in North America there is no such thing as a 940 with a 5-speed.
3. 1997-1998 V90: While the '95 & '96 years had problems with porous engine blocks, the last two model years seem to be holding up well, from what I've heard. It's true that the engine lost 20hp over earlier years (new cam), but it gained torque, which supposedly improved power availability at highway speeds. The downside is cost - lots of goodies on these luxury models, which means higher purchase price and higher parts costs, and more goodies=more to go wrong. But if you're willing to make the investment, I hear that they're a dream to drive (despite being auto-trans only). Just insist on proof that all maintenance has been done on time.
4. 1994-1996 850: Both the n/a and turbo variants will have more power than your 242 (assuming it's stock). The first model year, 1993, had lots of teething problems, and no wagons were available that year anyway. 5-speeds were available if that's important to you. They are FWD, so the handling characteristics might not be what you're looking for, and look out for problems with the A/C evaporator, but overall the 850s seem to be ageing well. I certainly see a ton of them on the road.
So, weigh your needs & wants against what's out there, and see what you can find! Good luck--
jeff daigle
'89 745GL 135,000mi
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