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Newbie asks about idle engine speed, mystery LED? 900 1995

Hey everyone, sorry if I'm beating a dead horse or asking something that's been asked a million times, but I'd like to ask you a few questions.

My father recently purchased a 1995 Volvo 945 Wagon, 137k miles for about $6000. After about 3 thousand miles, we took it to the dealer for the 140k checkup and the check engine light had come on a few days earlier. We ended up with a stiff $1200 bill for replacing a few throttle body gaskets, EGR and intake gaskets as well as the IAT sensor. Driving home from the dealer everything seemed fine, but the next day the Check Engine light came back on again. I also noticed that the engine seems to idle much higher than I would think it should be (~1500rpm).

Even more recently, there's a small red LED right next to the thermometer in the instrument cluster that's on. It's not labeled anything, and it doesn't show up in the Owner's Manual. Might the dealer have forgotten to reset the Check Engine light, or is it possible that they may have forgotten something? What does the small red dot mean?

Thanks for your time and help, it's greatly appreciated. :)






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