As mentioned above, the D2 engine is really not strong enough to haul the V60 around briskly. It also gives crap economy because the body is heavy (1600kg).
Look for a D3 or D4, these have the same 2.0 5-cylinder diesel which is a lovely engine, but be careful which one you look at and get, as Volvo played around with the power outputs.
At launch (mostly 10- and 60-plate cars), ALL D3s had 163bhp but quite a narrow power band (peak power was at 2,900rpm). These engines are badged as D5204T2 on the driver's side end of the cam cover (you have to remove the engine cover to see it).
After a year, the engine was remapped to spread the power over a wider range, although peak remained at 163bhp. These will be mostly 11- / 61- and 12-plate cars. These are badged D5204T3.
Then Volvo had the bright idea of rebadging the 163bhp cars as D4, and offering a detuned version of the same basic 5-cylinder 2 litre engine as the D3, with 136bhp. I think (not 100% sure) these are badged D5204T7.
So be absolutely sure you know what you're getting!
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