Faults:

Timing belt broke, was 200,000kms overdue for replacement. "Non-interference" engine means no damage done. New belt was under AUS$30 and took an hour to fit.

Main fuel pump died. Made lots of warning noises before stopping.

In-tank pump died. Does not stop the car, but the fuel tank cannot be run down below about a quarter of a tank.

Driver's seat sagged out. A large chunk of foam jammed under it made it more comfortable than when new.

Air con not working since before purchase.

Heater fan died.

Metallic paint now in poor condition (has not been garaged since 1997 at the latest).

Automatic transmission developed a leak on the extension housing. I got lazy with topping it up and allowed it to run low on fluid - now it is reluctant to engage top (4th) gear. Hurts fuel economy more than comfort.

General Comments:

This car has been used and abused. It's towed rally cars and dirt bikes around the country side, it's chased rally cars down rough dirt roads, it's been used as a ute (engines and gearboxes in the back), and it's been a model of reliability, despite the very high mileage.

Both times that it's stopped (timing belt and fuel pump) could have easily been avoided with some precautionary maintenance.

The cylinder head has never been removed - most 240s will blow a head gasket at around 250,000 to 300,000kms but this one has escaped.

Around town it feels a bit sluggish and ungainly, but above ~80kph it suddenly makes a lot of sense.

Handles remarkably well, if you allow for the body roll. Finds traction in mud/snow when others cannot.

Brakes are excellent, even by new car standards.

Very easy to work on for a DIYer. Be aware that many Volvo specialists will charge ridiculous prices for parts and labour - shop around! Parts can be had cheaply in Australia and/or the Internet, and there are plenty of highly competent mechanics who don't over-charge (the only difficulty is finding them, but that applies for all cars nowdays!).

Also be aware that reviews of USA cars don't really apply to Australian cars - we had different suspension and different engines.

Easily the best car I've ever owned (and I've owned plenty!).

Faults:

Since purchase in August 2002 has required the following maintenance:

New Battery. Although previous battery was not dead, was done under routine maintenance.

New Fan Belt was required at 230,000.

Air Conditioning was re-gassed on purchase, but cooling fan motor has since departed and I cannot justify the $550 replacement cost for a $3500 car.

Power Steering Pump Hose cracked and was causing the car to stall, replaced by local mechanic for $148. (Volvo hoses are significantly longer than 'normal' fit hoses, hence custom fit).

Rear muffler just replaced at 240,000 for AU $110.

General Comments:

Car has been very reliable on the whole. It has never let us down even though my wife puts the incorrect fuel in occasionally. Works perfectly as a 2nd car which is what we bought it for.

It is great for highway cruising and the seats are very comfortable. Driving position is good as is vision from the car.

Boot space is excellent (ours is the sedan) and has come in great handy when we have moved house.

Fuel efficiency has been impressive despite the fact it runs on more expensive leaded petrol. Unleaded makes it run VERY badly.

I would recommend this car to anyone who is looking for a safe, reliable daily driver.