After having my 2001 V70 XC lost to a failed transmission I am looking at 2 other cars.
could anyone tell me if the known AW Transmission issues happened to affect the 2005 V50 and 2002 S40.
I don’t really want to have another car with the known dreaded transmission.

is there anything else I should be looking out for with these two cars.

 

The aw55 is used in those cars also - (with the 4 and 5 cyl gas engines) but does not seem to fail as much.

 

+1, most of the fails in the early XC70s was in the bevel gear (ie transfer case) not the transmission. the 2001+ S40/V50s use a five speed auto Aisin AW55 transmission (also used by Lexus and Toyota) which is very reliable. Key things to look for when buying an older Volvo are 1) age of the timing belt. The service intervals for the I5s is typically 10 years/120K miles with a new tensioner and idler as part of the service (budget $600-700). 2) health of the PCV system. simple test is to pop off the oil fill cap and look for any sludge (staining is normal, accumulated gunk is not), then place a latex (surgeons) glove over the port and if it inflates fully with the engine running then you have positive crankcase pressure which can cause issues with seals 3) Transmission fluid - check for proper level and color/smell. Brownish red is normal, black, burnt smell is not. 4) color of anti-freeze. OEM / recommended coolant for these cars is blue. If it looks rusty or film and staining exists, you may need a flush. 5) Suspension bushings rubber, motor mounts - these can get old and the rubber can crack leading to poor handling, clunks etc. Also check shocks/struts and axle boots for any signs of leaking. 6) does the car have a maintenance history? Extra points for yes, double extra points if they've been using synthetic oil (good for keeping the VVT gear clean).