O2 sensor replaced before purchase of car - $500.
New tires at ~170xxx miles.
New brake pads and rotors all around ~170xxx miles.
New turbo oil line and one radiator hose ~170xxx miles.
New control arms bilaterally at 190xxx miles.
New struts bilaterally at 190xxx.
New driveshaft at 190xxx miles.
Newer viscous coupler at 190xxx miles.
New fuel filter at 190xxx miles.
New oil return line at 190xxx miles.
New motor mounts (all) at 185xxx miles.
New timing belt 172xxx miles.
New serpentine belt (going on this week) 195xxx miles.
New spark plugs 192xxx miles.
New strut links 192xxx miles.
The viscous coupler went out on me at 185xxx miles. Was experiencing a significant "clunk" when going from forward to reverse in a turn (backing out of a driveway, then pulling away). Bought a new driveshaft (also bad), didn't fix problem. Found a viscous coupler at a salvage yard, had Volvo install it, and it is fixed.
This car has made two trips cross country (from MN to Las Vegas), and has performed spectacularly.
I am in love with this car. It is my first Volvo, and will definitely not be my last. I've put some money into the car, but with any car at this mileage, this is to be expected. I don't mind spending money on mechanical parts, because I accept these are wearable. Not fun to have to make repairs, but I live in MN. The seasons are not kind on vehicles. This car handles exceptionally well in all weather conditions. The snow is no challenge, and the handling is very predictable.
My first car was a '92 VW diesel Jetta, and I suppose only that vehicle handled more predictably than this car. I love this car. All 5 seats in the car are extremely comfortable. Even closing in on 200K miles, this car is in excellent shape.
I do agree with other users that this car could use some revisions. But we also need to understand that this is a prototype vehicle. The AWD XC wagon was new to Volvo at this time, and any major makeover like this proves to have some problems. I've accepted this, and I love this car.