Don't walk away from it. RUN!!!
I had a 1999 Volvo C70 which is in this same era. I will never buy a Volvo again. Period.
The ABS brake sensor on these cars runs the entire dashboard. When it goes down you lose all dash electronics. The replacement part is $500 +/-, although remanufactured units are available. With your low mileage, one of the questions to ask the seller is if the module has ever been replaced. If it has, then the mileage is bogus. If you lose the mileage you lose the odo, but keep the tach (IIRC)
The turbo on mine let go with surprising regularity. After rebuilding it ($1200 each time) at a local indy shop for the fourth time, the shop owner asked why I kept the car. That was sortof my aha moment.
Look up the price of replacement tires. Compare to the price of tires for a Buick Lacrosse. Or any other non-luxury car in the same segment.
Aftermarket parts are hard to find, expensive, and tend to be very cheaply made. Dealer parts are hard to get and tend to be very expensive. I have a set of sparkplugs if you need them. I think the sticker price on them was just over $100.
There is an active online Volvo community. I think its called Swedespeed - even they complain about this era of Ford-inspired Volvos.
http://forums.swedespeed.com/forumdisplay.php?9-S70-V70-amp-V70XC-(1998-2000)
The front bumper makes a great snowplow.
I tried 4 different Volvo dealers for various service needs. Every one of them was worse than the previous. The first one kept my car for 2 weeks when I took it in for a complimentary oil change. Things went downhill from there with Volvo Canada.
The Volvos are amazing cars to drive. they 'fit' perfectly and feel amazing on the road. They do nothing else well. Sortof like a lot of other clown cars.