1) You might want to start by perusing some of the FAQs on this site -- particularly these:
http://www.brickboard.com/FAQ/700-900/BuyingUsed7xx.htm
http://www.brickboard.com/FAQ/700-900/HighMileageVehiclePrevMaint.htm
2) As suggested by the others, I'd do a tune up -- complete with new flame trap. You can get the kits (plugs, wires, air filter, distributor cap) from IPD / FCP Groton. Not expensive.
3) You could do a compression test. If you have lowish compression that might be suggestive of an upcoming head gasket replacement. If you're so inclined you can do that yourself, too.

4) I have a 1992 (Rex/Regina) 740, 220+K -- which like yours is a very nice car -- but a bit slow. After 7 years of trouble free service it started developing problems -- it would stall in traffic -- simple answer -- new fuel pump relay (and change the noise suppression relay, too while you're about it).

Last year I was getting oil in the coolant reservoir (a fairly certain sign of gradual head gasket failure) -- so I muddled through, learned a bit from my neighbor and the comrades here and matthewsvolvosite and did it myself. For me the key for doing stuff myself on the car (I'm not an expert) is time. I have another old volvo and one is in my workshop-cum-boutique while the other is on the road. Over time I'm hoping I'll save some money and become good at doing things for myself, while having the satisfaction of neither "consuming" more cars nor filling the state's coffers with tax dollars.

5) One thing I wish I had on both my cars is good maintenance records. Right now I'm overhauling the brakes on the 1992 740 -- and the next thing on my list is attention to the fuel pump. I understand they tend to fail around 225K.
Anyway, you might be lucky enough to have good maintenance records with the car which will help you keep this car running well for a while yet --

All the Best,


Rob