2007 S60 Replacing the headlight
 

Help - My Volvo dealer tells me I need a new headlight mechanism that will cost $1,500 +. Volvo dealer told me I have xenon headlamps and condensation is causing low beam bulb to fail. Is it possible that this repair can possibly cost this much ? Do you know of any alternatives

Welcome to VF.

If it is parts and labor, then it could be, but it still sounds very hi. Being you have the xenon lights, you probably have the headlight housing like the S60R with the housing that moves when you put the high beams on.

If I were you, I would pull the head light, let it dry out overnight and then reseal it. The condensation has to be getting into the light from somewhere. Not sure how handy you are around a car.