Agree, rust is not normally an issue on these cars - in the UK at least. You were right to walk away.
Harking back to the original post I still think it's possible to get an S60 with lowish miles for reasonable money. I paid £1,500 for mine 2 years ago with a documented 81,000 on the clock. It did need a few quid spending on service items and some cosmetics but it's a great car.
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2006 S60 2.4D SE
1997 TVR Chimaera
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