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I'd be skeptical. I'm sure there are alot of nice old Volvo's in Huston. Here in N.W. Ohio they become rust buckets if you don't keep the winter salt off them.
If you getting it a killer price, great condition (other than black smoke) and the engine isn't noisy, then maybe its worth it. It could be running rich because of (as previously posted) the AMM (expensive) or temperature sensor (inexpensive), but it would idle rough when first started cold from temp sensor and all the time with AMM. If you don't have a rough idle, it could be as simple as a clogged flame trap, which will push oil out the oil filler cap (check for oily engine) and engine seals (not to say thats the only issue). I picked up my 740 at half market value because of oil leaking(simply dirty flame trap) and bad flex plate. Fixed myself and have been driving reliably for 6 years now.
You might want to pay a little and have a mechanic look at it to make certain there is not a major problem and then make a determination from there. Take a look at the FAQ section of the brickboard, it may give you some tips, even though primarily for 940 and 740, the engines are basically the same as 240.
Gary
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