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Disclaimer: You are seeking "should I buy?" advice from a group of enthusiasts, who are all going to say "Yes, of course!" So given that...
IF it's the case that you *MUST* have reliable transportation now, the choice is a little simpler. It sounds like you could easily spend $100's on the Camaro, just to get it be acceptable. I know both cars, and unfortunately the Camaro is not a car that ages gracefully. A lot of Volvos drive very well at 100K... 200K... more! Not all; obviously all things require maintenance. Even this 940, which sounds like it has quite low mileage for its age, is going to need *SOME STUFF*. There's no free lunch, and you'd be mistaken to expect that it'll be 100% turn-key with no repairs required. Of primary importance are the cooling system and the timing belt service. It's a pretty basic and simple design, and normal people can service them with normal tools and techniques, so that's a big plus if you're the do-it-yourself type.
I think the $500 figure is probably a good ball-park figure for typical needs. A lot of this work is just normal stuff you'd want to do anyway- it's good to go through a new/used car thoroughly and "zero-mile" it. That means, do all the stuff that would get you back to the start of the recommended service cycle. Typically I'd expect to do a full tuneup (plugs, wires, cap, rotor, coil wire), oil change, air and fuel filters, timing belt (only if it wasn't done at about 100K), belts and hoses. Do the cheap services: flame trap, throttle body cleaning, replace oil cap gasket, replace thermostat. Exhaust, tires, brakes, suspension? All needs service based on condition, and all stuff you can do yourself besides tires and alignment. There are a few oil leaks that this car can have which you'd want serviced by a shop, notably the rear main engine seal, and transmission tailshaft seal & bushing.
The more you know going into it, the better you can prepare- try to get the car evaluated on a lift at a shop before you buy. It's good practice for anyone buying a car, whether it's a Camaro or not! Also recommend you read the whole 700FAQ- "Buying a 700/900".
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Rob Bareiss, New London CT ::: '87 244DL/M47- 229K, 88 744GLE- 218K, 82 245T-181K Also responsible for the care and feeding of: 88 745GLE, 231K, 87 244DL, 239K, 88 245DL, 246K
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