I have a 1986 740 turbo with the AW71 auto tranny that I bought for $3,000 in the summer of 1998. It now has 162K miles. The dash had some cracks when I bought it, but they have not worsened. The rest of the interior and the body are very clean. I have added a 3" exhaust and upgraded the brakes for autocrossing. The engine has 175 lbs. compression in all cylinders and does not use oil. The turbo has not given me any trouble. The heater core gave out last summer and the A/C compressor failed two summers ago (my wife was driving it and she still reminds me of it). I cut the belt off to save the drag on the engine and I don't plan to replace the compressor.

Any car of that age and mileage will start to need parts, but replacements will last equally as long, so you will probably be ahead, given the inherent strength of the Volvo engine and trans. Because I autocross, I expect certain things to wear out faster. In normal use, keep it washed and change the oil (Amsoil enthusiasts can weigh in here) and it should just run and run.

Steve A.