I am considering purchasing a 2001 S60 for my son for his first vehicle (safety and fuel efficiency are our main considerations). The car has 157,000 miles on it but looks like the previous owners have taken very good care of it. I have done some research here on the forum, as well as a couple other message boards, and learned that the predominant issue with the car would be the automatic transmission.

The transmission was rebuilt at 130k by an independent Volvo shop and I have verified with the Volvo dealership that the ETM received a software upgrade back in June of 2006. The ETM remains under extended warranty until September 20 of this year. In 2007, the fuel pump was replaced under warranty/recall at 114k. The timing belt was replaced at 130k and the water pump at 140k, as well. The seller has records to document these repairs in addition to the information I got from the dealership.

Are there other problem areas that I would need to consider before buying this car? What kind of real world fuel economy would I expect to get (daily drive would be half freeway and half hilly/curvy road)? The seller is asking $4300 but indicated he'll accept less. Assuming the car is in very good cosmetic condition and there are no other mechanical issues, what would be a fair price to pay/offer?

 

It's hard to recommend a starting price for negotiating a selling price, but Kelley Bluebook and the Nada Guides are a good place to get stared.

New Cars, Used Cars, Blue Book Values & Car Prices - Kelley Blue Book
New Car Prices, Used Car Values, New Car Reviews & Car Buying Guides - NADAguides.com Official Site

I used to keep track of my fuel economy and I averaged 23mpg combined. I am a bit of a quick driver, with about 50-50 city-hwy.

Other than the transmissions, these cars typically have few mechanical issues. If anything, the electronics can get quirky from time-to-time, but it is near impossible to predict such problems. The sirens are a common problem, so check the records for that or test it to verify it works. As long as the maintenance has been performed properly, you shouldn't have too many surprises.

I would recommend taking the car to the dealer or an independent shop for an inspection. The indy shop in my area charges $80 for an inspection, which is a small price to pay, especially if something wrong is found.

 

Sounds like you have found a decent one with documentation and the price range is reasonable too. Check cars.com and other ads in your region for pricing.
I'm averaging 27mpg over two years and using a moderate foot.
Ed

 

What model of S60 is it?

Since it's for your son, I would recommend it because it is a very safe car, yet stylish as well. Also the main transmission issue appears to be fixed.

 

I believe it's a base model (non-turbo).

Another thing to consider is that the closest dealership is 2 hours away. I can fix just about anything that could go wrong mechanically (excluding an automatic transmission), but if I encountered an electronic or security issue that required a Volvo-specific proprietary scanner, I would have to have the car towed 125 miles. Are there any prevalent issues that would require a trip to the dealer?

 

Most DST codes can be read at chain-type auto part stores to determine your problem areas. The dealer would be necessary for some ABS, SRS and security problems. We and the archives can help with most anything else.
This, of course, means your son has to get involved and learn too.
Ed