I recently purchased a 95 850 turbo, runs well, does not overheat or overpressure the coolant tank, I noticed a little blue smoke and moisture out the exhaust. Is it possible the turbo could be worn enough to leak water into the exhaust?

 

No, your 850 is not burning coolant; it is burning engine oil.

Somewhere in the engine/turbocharger, there is an oil leak. Keep checking the oil level frequently and maintain the level near the top limit of the dipstick and have problem corrected asap. Also, if your 850 has not have the PCV component replacement, I would do that too.

General servicing reference:

https://volvoforums.com/m_48928/tm.htm


JPN

 

Check the thermostat for the over heating problem.

 

Are you parking it facing downhill? Our 95 Turbo gives a small puff of blue smoke on startup, but only if it is parked on a downhill incline for 4+ hours