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Obviously, none of us have examined, poked, or prodded the car -- so anything any of us might offer sight unseen is a wild guess.
The things you mentioned raise questions/comments in my mind.
At 199k, how's the rear main seal, tranny rear bushing 'n seal, center support bearing? Water pump, front seals, radiator? Blower motor?
Those small rust spots can have some huge hidden rust just underneath them. How are the floorboards, particularly under the driver's seat? The rockers? Door bottom inside edges?
5" tear in driver's seat back -- leather seats in a GL? How's the seat bottom? Bun warmers work?
Power windows all work OK?
Any idea if the AC works?
Squeaking in front suspension can indicate any number of needed repairs from trivial to time-consuming and annoying.
MC replaced -- any other brake work done?
Is the car an '88 (as your first post indicates) or an '89 (as your later post indicates)? The '89 is a better car but with a worse FI ecu.
Rear tires, shocks, exhaust, brakes, steering, suspension work?
Any indication of body work?
Any piston slap upon cold start-up?
Transmission shift OK when cold, even into OD?
Gas smell might be a bad gasket on the sending unit.
What does underhood look like? Weeping oil anywhere? Any signs of dripping antifreeze? Signs of repairs? Is the motor generally cleaned 'n cared-for, or is it grungy?
Rusty-looking grunge on wheels might be rust or might be simply brake dust. If the pads are worn down to metal, then the rotors are likely scored. This means the resulting metal powder accumulates on the wheels and rusts within minutes or hours, leaving a true rusty powder.
Is the sunroof original Volvo? I didn't think a sunroof was offered in '89...... was it?
Not clear what you mean by "hole about a dime size on metal/gasket seal portion of the windshield (driver side)." Is rainwater leaking into the passenger compartment? Do you mean the windshield gasket or the outer decorative seal?
Sunroof leaks and/or maybe windshield leaks -- did the carpets ever get soaked? (If so, then you should remove seats and carpets to clean 'n dry, and also inspect bare floorboards for rust.)
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I would revise my $50 to $5000 estimate to be $200 to $1200 depending on condition. The torn seat might indicate other interior wear. The small rust spots might portend bigger but hidden spots (door bottom edges, inside, seams).
Why is the car for sale?
--
Don Foster (near Cape Cod, MA)
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