Sadly, after 25 years, our Volvo 240 has reached the end. I am considering a 960 estate as a replacement. Is this a step up and is there anything in particular I should watch out for?
Also how much use will the 240 be as a parts car for the 960, rear suspension?

 

Jump up.
AC operatiin, transmission shifting & no flashing shifter button and no misfires (burnt valves).

No parts are swappable.

The 960 is the best car that Volvo has ever made. More sophisticated, and a little bit more maintenance.

 

absolutely keep an eye on the timing belt on a whiteblock (960, 850, etc), if it breaks, the engine is very expensive scrap metal. the 92/93 960 had some teething pains, the 94's were better (improved gear ratios), and while the updated 1995+ 960-II (body colored bumpers, new cosmetic styling) is in many ways nicer, its got different suspension and noone makes shock absorbers for it, the 960-II wagons have transverse composite leaf springs.

ours had a very plush ride, was very quiet and smooth. that engine won't win any races, but its plenty powerful enough.

downside, the 960's have an electronic controlled transmission thats considerably more expensive to repair than the AW70/71 used in 240/740/940 cars. flush the tranny fluid every few years, don't abuse it, and it should last a long time.