I recently purchased a used 09 volvo s60 and i failed to notice the large deposits of crud on the engine oil cap and dipstick. Turns out the previous owner went to long without changing the oil.
What kind of damage does this do to the engine? PCV system? How do i rectify this ? Or is the engine shot and to expensive to fix?
It ran slow and sluggish after an oil change recently too . Any advice is appreciated

 

Any check engine codes? have you done an oil change yet? The only way you'd know if the engine is "shot" if a) there's metal bits in the oil (do you have a magnetic drain plug? ) b) you hear rattle or knocking sounds c) the compression is low (target is 150 for a turbo, 180 for an NA engine but cars will run at 120 or 130 PSI) d) car consumes oil.

If you suspect there is crud, you can drop the oil pan and clean out the bottom end or you can try a Seafoam treatment.

As to loss of power it could be unrelated - dirty throttle body, dirty MAF, fouled spark plugs, dirty injectors, low fuel pressure (fuel filter?) or it could be due to a gummed up VVT system (its driven by oil pressure and the galleys can get clogged) or by low compression

I'd probably start with a compression test, and install fresh plugs as part of the process. Also scan for any stored fault codes.