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This is a no-brainer. Lower miles, less money, smoother ride, the 960 would be my choice. Note that the T5-R was a '95 model limited edition and although the '97 is more or less the same car badged as a 850R, it doesn't command the high re-sale or collectors value. I would say the price for the 850R is a bit high. The wife would really appreciate the 960 for comfort. Just may want to replace the shocks all around to get back the orig ride if it hasn't been done since 80k miles, and should perhaps bargain with that in mind.
I just traded in a very clean low miles '96 960 w/77k miles for my V70. Not that I mind the new car, but the 960 was such a sweet ride, perhaps the smoothest ride ever built by Volvo.
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'89 245 Sportwagon, '04 V70 2.5T Sportwagon
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