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Originally Posted by Volvo6
Loads of good advice here.
Personally I've come to the conclusion that with these cars now being c.25 years old, there are not any right or wrong answers to whether one should 'walk away' etc or not, unless there are some obvious terminal signs.
If I were looking for a 850R right now there would be very little that would put me off a car, assuming the price was right. As others have said, terminal engine failure is rare. Although the oil leak is concerning, with the relatively low mileage of the one you are looking it seems unlikely it is something that cannot be fixed or mitigated. The condition of the top mounts suggests that the car has not been well looked after, but again the effects of neglect can normally be fixed.
I have sometimes consciously bought a car needing a bit of TLC knowing that it would probably end up costing more in the long run than paying a bit more for a nicer car up front. The upside is the lower price and the fun of doing it up. The P80 Volvo population is increasingly polarising between sheds that haven't quite found the scrap heap yet and minters that are being cherished and increasingly go for money that would have been absurd a few years ago.
This one seems somewhere between the two, but probably worth saving. Have a good look around at what else is available, but if you don't want to spend a lot getting a mint one, I'd go for it with eyes open and knowing it will cost a bit to make it back into a nice motor. Should you need to spend on it gradually and be a bit selective as you go, it is probably unlikely to leave you in a cloud by the side of the road as a result.
Don't know how much your friend wants for it, but I wouldn't pay more than £2k.
The nice T5 vs. R is also a very good point, all depends on how much you want the 'R' factor really. Similarly, the later S60/V70R are really nice cars, but they don't (for me at least) have the same appeal as the P80 platform.
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All really good advice on this thread... I'm going to put in a low offer (probably <£2k) and see what happens, I think the only way I'm could make this work and not feel like I've bought a nail is to get a good price... I think the comment on the fun of doing it up put it more in perspective; I've been looking for a project and a hobby car for a while as new car just bores me so if i see it as something to work on then it makes more sense, I don't particularly need it to get me anywhere so it can be slowly slowly brought back to glory.
If it all works out look out for the project thread as it will certainly need one of those!