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What condition is the existing fluid? -if the car has 200k miles and the previous owner never changed it, I would assume that a good purge is in order.
When changing the fluid on a new-to-you vehicle for the first time, I would strongly suggest removing the transmission pan and cleaning it throughly. You will probably find a lot of sediment and tiny metal paricles/shavings. Clean the magenet throughly before re-installing. Since Volvo transmissions do not have a true 'filter' in them (it's more of a mosquito screen), it's important to remove all possible sediment and dirt from the system.
A good cleaning of the pan, combined with a power flush, and the use of some good quality ATF will hopefully bring back new life into an old tranny. I've had amazing results using Valvoline Durablend ATF (which is 1/3 synthetic). It shifts better at lower temperatures, helps improve the seals, and it can break up sediment in the internal valve bodies over time.
You can pick up a rubber transmission pan gasket at Napa for $3.75. -but call ahead, they usually don't keep them in stock, but they'll have it for you within a couple days.
Good luck and I hope it's just in need of a good fluid change. God bless you and your car,
Fitz Fitzgerald.
P.S. Since your car has a lockup torque converter, you will have more sediment and shavings than a car that doesn't. The internal clutch in the torque converter wears down slowly over time and contributes to the 'gunk' in your transmission.
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'87 Blue 245, NA 214K
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