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I just traded in my 960 and got a new V70 2.5T. The LPT high torque turbo motor is actually better than the 960 as far as smooth engine cruising and ride comfort. The 960 cruises at 3000 rpm at 80 mph while the 2.5T is 2500 rpm. I put 1000 miles in it since last Wed, and it eats up the road, goes faster, gets much better mileage than the 960, and far more comfortable with the sport leather seats and premimum package. It handles as well or better than the 960 with the 17" 235/45 Pirelli's too.
The S60 2.5T can be had now with incentives and rebates for the price range you are in. I would stick with Volvo if I were you. :)
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'89 245 Sportwagon, '96 960 sedan
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