Just bought a 97 960 turbo with 220k on it. It runs extremely rough and loud and has greatly reduced power almost as if a couple spark plugs are fouled. However, there's a good sized hole in the exhaust right before it hits the cat and I'm wondering if that might be causing the issue?

The guy I got it from said the head gasket was bad and that's why it's running so rough, however every check that can be done without tools tells me it's not a headgasket. It doesn't even get hot! No, I haven't done a compression test or anything like that but I'm thinking this hole in the exhaust may be the issue...thoughts?

Either way, I paid $200 for the car and it's in almost perfect shape so it's just a cheap project for me. Never even owned a Volvo so this is a new experience lol.

 

Congratulations! Everything you described are relatively easy to fix. I'd say you're on track with it needing a head gasket. Lots to resource before you even consider that. I too had a punctured exhaust pipe that resulted in rough idle, loud noise, and reduced power. Also damaged the cat. Replaced everything from exhaust headers back to the muffler. Then did a major tuneup encompassing: both belts, water pump and all idler pulleys; complete coolant upgrade with temp sensor and blue fluid; complete pcv system; all vacuum hoses; air filter; new ignition coils, plugs, wiring system (from Dave) and ignition sensors; throttle body sensor, cam and crank sensors; pnp; reconditioned fuel injectors, fuel pump, filter and fuel pressure regulator; battery and cables; and (of course) synthetic oil... and it is now smooth as silk. It also rides smooth as silk, although after I do an entire suspension upgrade this weekend, I am expecting it to ride on rails. Transmission is solid, no need to even touch it - although I did drain it a few times to get to red florescent fluid. This is a fun car to work on and an even nicer car to drive. I'll get into the interior and body (has no dents or rust) for paint this summer. I paid $800 bucks (eBay), put less than a thousand in it, and expect to get twice (if not more than) the 200,168 showing on the speedometer today. With NO CAR NOTE!!! You've got a good project car for $200 bucks.

 

Sorry... meant to say, NOT needing a head gasket.