Life with a $500 Volvo XC70

It's been a while since I'm impulse bought an old, somewhat broken, car for hundreds of dollars to rely on as daily transportation. 

With the future repair list growing on my Subaru I was wondering if it was time to quit while I was ahead and move on. The next day this Volvo presented itself... I would have had to buy gas to drive the Subaru home and the Volvo had 3/4 tank. No time like the present!

So what have I gotten myself into this time? 

It's a 2006 Volvo XC70. T5 (turbocharged 2.5L 5cyl), autmatic, AWD (in theory) with 207k miles. Black on black, typical options (heated leather, moonroof). Quiet and smooth, it runs strong and shifts well. No warning lights, minimal suspension noises, good brakes. All in all it feels... fine? Interior is decent, body is decent, paint is trashed. So far everything inside it works. 

There are a couple of known issues. The first being a bad steering column u-joint - no big deal. The second is a little bigger of a problem - this car is currently front wheel drive. 

First, for those who don't know, a brief explanation of Volvos 3rd generation Haldex AWD courtesy of FCP Euro.

As soon as the engine is started, an electric pump pre-pressurizes the AWD transfer clutch. When the traction control computer senses wheelspin, the pre-pressurized clutch pack is engaged instantaneously and torque is transferred to the rear axles. Once engine torque is transmitted through the Haldex unit, the mechanical oil pump takes over from the electric pump and continues to supply pressure to the hydraulic clutch pack. Haldex claims a reaction time of just 15 degrees of wheelspin. This AWD system is marketed as "Instant Traction" by Volvo, and "PreX" by Haldex. You can view a slow-motion video of my XC90 equipped with third-generation Haldex Instant Traction below.

It's great, except for when it isn't.  

A VERY common failure on these cars is for that electric pump to die and short out the DEM (Differential Electronic Module) on the rear differential. We liken it to Subaru headgaskets , based on cost and failure rate - and clientele. They all do it at some point or another and it's typically a four figure repair at a shop. The OEM pump runs about $350 (aftermarket ~$150), and the module needs to be refurbished or replaced. The modules are coded to the cars so a simple junkyard swap is not an option. There are a number of services out there to refurb them, most notable is XeMODeX. 

I'm cheap, this car is cheap, and I work in a shop with a lot of Volvo stuff around. I'm hoping I can remedy this for much less 

I'm not sure what the long term goal is for this car. Might be a couple month flip, might stick around a while. The only work I've done so far is start to clean the interior (I wish I took before pictures...) and put my roof rack on. 

Budget: Purchase, Tax, DMV Fees: $641

Love me some cheap fun! Don’t know much about Volvo’s but seems like clean car. My first car was $599.98 Ttl out the door. Drove it 130 miles with dry rotted tires, leaking water pump and seeping fuel line. Another $1000 I DD the car for 2 years. Never know what kind of gem for cheap!

I have the same year XC70. did you check if the collar sleeve on the bevel gear is good? could be a 120$ fix and a few hours of your time. Any questions, let me know, I work at Volvo as well.

Cant turn the driveshaft with the car in park and no communication with the DEM, so we are pretty confident. 

Thanks I'll definitely let you know if anything weird comes up! 

I remember that the XC70s had some weird problems, but that AWD system is just wacky. Honestly, could you simply delete the whole thing and run it FWD for reliability's sake?

In reply to GIRTHQUAKE :

yes very easily. remove the collar sleeve or unplug the dem/ aoc pump

Or just leave it as it is and continue driving it as FWD without lifting a finger. It's not unusual for people to simply not fix them. 

For $500, that wagon looks amazing.

I wouldn't even bother fixing the AWD.

Hell, I'd maybe look in to see what it'd take to do a full AWD to FWD conversion (cost and time, minus weight saved) for possible better mpg.

If I keep this car for any real length of time I will be fixing the AWD. Something about these cars makes them formidable burnout machines without the AWD working. It doesn't do well on steep, slippery, hills - such as the one I live on. 

I am curious to see how this will work out, I have been thinking about getting one but I'm not sure if it would be a disaster or not.  They are cheap enough that its not too big a deal and seem like fun, but dealing with constant electrical problems would get annoying very fast.

Also curious to see how this treats you. I've set a date for my $1500 challenge with friends and a cheap XC70/XC90 would be sweet, although I'd need the AWD to work for our purposes.

How did this thing turn out? I'm considering getting one. 

P3PPY said:

How did this thing turn out? I'm considering getting one. 

What? You found one for $500.00 too?

My 2001 V70XCSE didn't have the complicated AWD system, I just had to replace the bevel sleeve thing.   Can you add an older drive shaft to a newer V70 to get the old stupid system that just works great?