I will second what others have said and add to check the rear main seal (and cam seals in the front) for leaks. I think Volvo improved these on the later 960s, but there are still problems. My 1993 leaks like crazy and my 1997 does not (crosses fingers very earnestly!) leak.

I see those cars all day for the price you stated, although with somewhat higher mileage. I think that people generally don't touch them as used because they are afraid of the maintenance costs.

They're no longer considered "luxury" cars as even Hyundai has nicer amenities, but they are a nice ride.