Wife's 07 V8 (70,500 mil) started having oil level warning (not oil pressure) go on intermittently yesterday. Have checked oil three times (including driving to a completely flat place) - oil level seems full or slightly above. Is there a known problem with these sensors? What's it likely to cost if it's just the sensor. Wife gets nervous about car reliability and is already starting to lust after new (non-Volvo now that they are Chinese owned) vehicle. I'm trying to stall for another year or two. Up till now, this has been a good car, unlike the 05 T6 we lemon lawed at 20K miles.

 

this is obvious, but are you sure you're checking the oil level rather than transmission fluid level? if the sensor is bad, I can't imagine it would cost much to replace, maybe couple hundred parts and labor tops.