Your ignition switch is bad. Just the switch portion, behind the keylock. The part is $26 and it takes 10 minutes to change.

The shiftlock thing *COULD* be part of the same issue, but most likely is separate, to do with the microswitch on the console. Again, not a big deal.

Set a cap on this car for what you are willing to spend.

I just got rid of a 95 960 after 2.5 years of ownership. I sold it for scrap value, with 2.5 years still on the car loan. Why?.........

In 2.5 years, the engine blew up 3 times, the head twice, the block once. As a former Volvo technician and active BB'er, I did ALL my own work. The parts alone cost me $11,000.

Some will say I bought a used car lemon. There was evidence of prior failure on the PO's watch. Taking out the engine failure for a moment.... this car is a MONEY PIT!! The problems you describe are perhaps the least expensive repairs you will ever make on that car.

Be VERY careful. Set a budget. AND DITCH THAT CAR AS SOON AS YOU GO OVER THE BUDGET FOR KEEPING IT ALIVE.