The 1992 model is the best 740, basically a 940 with different seats.

The A/C is better and more reliable. The ABS brakes are more reliable. The only safety feature it is "missing" is the passenger airbag. It does have an automatic locking differential, which works like a CHARM when you have traction on one rear wheel. The car drives well in winter, is predictable, balanced, but kind of slow. Overall, though, the 740 of that model year (or any later model year 940) is better than an 850, and I know because I worked on them in a prof. shop. The 850 is a good car, the S70 is better, but the old classic RWD B230F engine cars are the best. I just had my 940 on a 3-day, 1200-mile trip around the U.P. of Michigan, including the mandatory flat tire and MSP speeding ticket. Of course, 100% reliable, and it thanked me for the long, curvy drives that I took it on. Not powerful enough, but great to drive and the seats are super comfortable. The locking diff was a rock star performer on the Ottawa National Forest roads (still mountains of snow on those) and got me through some thick slushy goop. The ABS was perfect on sand-covered pavement, and the car itself was great. I wouldn't trade it for an 850 unless you're hell-bent on getting a zippier car (which it is).

Anyway.... those are my thoughts. I'm a fan of most of the 90s Volvos (even the S70 which can be a very good car) but I'm still not sure I'll ever buy one. I might move up to a different brand of car once I sell one of my 940s.