I had similar thinking to the original poster in this topic -- I did buy a 2001 XC70 AWD (180,000 km) that came with a full service history and lifetime use of Castrol synthetic oil changes. I agree that the engine is pretty bullet-proof.
The original owner had quite a bit of Volvo dealer service done on it, some of it quite surprising: -- broken steady bearing on propeller shaft (rear drive shaft) requiring new propeller shaft. -- broken front coil -- seized knuckle / hub & wheel bearing (rear) -- leaking angle gear housing -- all brake disks a couple of times
He also mentioned that he had never been able to figure out a vibration in the front wheels despite multiple wheel balancing and new alloy wheels.
I was really taken by the ride, capacity, and comfort of the beast. It also has lovely proportions to my eye. It had no rust, and was also very well kept. I decided to go all-out to refurbish it.
First bad sign was a faint high-pitched edgy sound coming from under the car when descending hills, especially steep ones like the Sunshine access road. Took it to a transmission shop in Calgary, who found the transmission to be fine but in the transfer case, the collar bearing (last one before the output angle gear) was so worn that it was BURNED and shedding metal chips. Also, the bearings in the transfer case supporting the front half-shafts were badly worn. I replaced all these bearings, plus re-manufactured half-shafts, and the noise was all fixed!
Front wheel vibration proved to be a worn power steering rack. Replaced that, and took the opportunity to do all shocks, wheel hubs / bearings, IPD up-graded F & R anti-sway bars, plus all engine mounts and subframe rubber inserts for good measure. Final result was a beautiful handling, smooth, dependable cruiser.
Final suggestions for a car of that mileage: TIMING BELT, water pump, 5 coil-overs & plugs. Also beware of the complexity of replacing the Volvo PCV system, usually needed at about that mileage.
Maybe other people wouldn't do it the way I did, but it seemed a shame to junk such a great machine just because some wear-outable parts had outlived their lifespan. Having said that, I would agree that the 2006 model has a lot of refinements not seen in my 2001, but I would shy away from the 4C suspension, since the Monroe electronically-controlled shocks are USD 370 each (mailorder), and $700 CDN (each) at the Volvo dealer!! Not including installation!
Final thought is the cost of money over time and the huge hit that depreciation causes. You can buy an awfully large box of parts for the price difference between a 2001 and a 2006 model.
Good luck in your decision.
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