Volvo 262/264/265, The Complete Buying Guide

Overview

The Volvo 260 series, the 262 two-door, 264 sedan, and 265 wagon, represented Volvo’s upmarket push in the late 1970s and early ’80s. Built on the same bones as the 240 but with V6 power (or diesel) and more luxurious trim, these cars offered a compelling middle ground between the workhorse 240 and the premium imports.

The 264 and 265 used the PRV V6 (a joint venture engine from Peugeot, Renault, and Volvo), either the B27 or later B28/B280 variants. The 262C Bertone Coupe is a different beast entirely, hand-built in Italy, rare, and expensive to fix. For most buyers, the 264 sedan or 265 wagon makes more sense.

Why buy one? You get 240 reliability and parts availability with a smoother, more refined driving experience. The V6 is quieter than the redblock four-cylinder, and the interior trim is a step up. But rust, electrical gremlins, and PRV engine quirks mean you need to buy carefully.

What to Look For

Body and Rust

The 260 series rusts in the same places as the 240, but the earlier models (1974-1986) are far worse. If you’re looking at a pre-1987 car, rust is the deal-breaker.

Check these areas closely:

• Front wings and indicators: The area around the front indicator lights, side repeaters, and wheel arches rots badly. The inner splash guards often rust through.
• Sills: Three-piece construction (outer sill, inner sill, body section between them). If one’s gone, they’re all gone. Check behind the jack points.
• Door bottoms and inside frames: Water gets in, drain holes block, doors rot from the inside out. Check the bottom edge between the side trim and the door skin. Open the door and inspect the metal where the window frame folds over, hidden rust lives here.
• Chassis legs and subframe: The battery tray area and the subframe mounting points rot. Not a simple fix.
• Spare wheel container and rear wheel arches: Common rot spots. Lift the trunk carpet and check the floor, especially around the fuel tank.
• Windscreen and rear window surrounds: Rusty A-pillars, often hidden under trim. Look for white haze in the glass, that’s moisture from a bad seal or rust.
• Rain gutters: Rot from the inside. Check along the roof edge.

If the car is a 1987 or later, it’s galvanised and far less prone to rust. These are the ones to buy if you want to avoid welding bills. The 1988-onwards models are even better, no more rust around the side indicators.

Deal-breaker: Rust in the chassis legs, subframe mounts, or structural sills. Everything else can be fixed, but it’s expensive if you can’t weld.

Mechanical

Engine, PRV V6 (B27, B28, B280):

The PRV is a quirky lump. It’s smooth and quiet when healthy, but it has a few weak spots:

• Timing chains: Listen for rattling on cold start. A noisy chain or worn tensioner is expensive to fix. Budget for a full timing chain job if you hear anything suspicious.
• Fuel injection gremlins: Early K-Jetronic systems are finicky. Later LH 2.2/2.4 EFI cars are better. If the car stumbles, stalls, or idles rough, start with basics, MAF sensor, fuel pressure regulator, injector O-rings. Don’t let anyone tell you it’s the ECU until you’ve ruled out the simple stuff.
• Coolant leaks: Check the radiator, hoses, and heater core. The PRV runs hot when healthy; any cooling system issues will cook it. Look for white residue around hoses or under the car.
• Oil consumption: The PRV can use oil, especially the earlier B27. Check the dipstick and look under the car for leaks. A small oil drip from the cam covers is normal; puddles are not.
• Compression test: If the seller allows it, do one. Aim for 8.5-9.5 bar across all cylinders. Big variation between cylinders or low numbers mean head gasket or valve issues.

Diesel (D24/D24T/D24TIC):

If you’re looking at a 260 diesel (rare but they exist), the D24 is a VW-built lump and pretty solid. Check for:

• Smoke on startup: Some white smoke when cold is normal. Blue smoke (oil) or black smoke (overfuelling) isn’t.
• Glow plug system: If it takes ages to start in cold weather, suspect dead glow plugs or a dodgy relay.
• Timing belt: These are interference engines. If there’s no proof of a recent belt change, walk away or budget £500+ for a full timing belt, water pump, and tensioner job.

Gearbox:

Most 260s came with the BW55 three-speed auto or M45/M46 manuals. The autos are slow but reliable. Check for:

• Smooth shifts, no harsh clunks or slipping between gears.
• Fluid colour, should be red or pink, not brown or burnt-smelling.
• Manual gearboxes: Listen for whining in 2nd or 3rd. The M46 overdrive should engage smoothly; if it doesn’t, the Laycock unit is worn.

Suspension and steering:

The 260 uses MacPherson struts up front and a solid rear axle. Parts are cheap and shared with the 240.

• Leaking struts, common. Budget for replacements if you see oil residue on the damper bodies.
• Worn bushings, check for clunks over bumps or vague steering. Cheap to fix but labour-intensive.
• Steering rack play, some slop is normal, but excessive play means a worn rack or tie rod ends.

Deal-breaker: A rattling timing chain on a PRV V6, or a diesel with no timing belt service history.

Electrical

Volvo’s late-’70s/early-’80s wiring isn’t as robust as the later 240s. Common issues:

• Alternator and battery: Check the battery tray for rust. Test the charging system, should see 13.5-14.5V at the battery with the engine running.
• Fuse box corrosion: Behind the ashtray or under the dash. Pull the main fuses and check for green corrosion.
• Instrument cluster: The old-style mechanical speedo and trip meter break. Not a deal-breaker, but annoying. Replacement clusters are available second-hand.
• Cooling fan relay: If the car overheats in traffic, suspect a dead fan relay or motor.

Interior

The 260 series came with nicer seats and trim than the 240, often leather or velour. Check:

• Seat foam: Volvo fitted new foam in many early models, but it still collapses over time. Saggy seats are common.
• Dashboard cracks: The old-style dash (pre-1981) cracks along the top. Replacements are rare. The later dash is more durable.
• Door cards and carpets: Water leaks from bad window seals or sunroofs cause mould and rot. Lift the carpets and check for damp.
• Sunroof: If fitted, it will leak. Check the drains are clear and the headlining isn’t stained.

Price Guide (Australia)

Rough pricing as of 2025 (AUD):

• Project/non-runner: $1,000-$3,000, needs work, likely rust or mechanical issues.
• Running but rough: $3,000-$6,000, drivable, but needs attention (rust, worn bushings, tired interior).
• Good driver: $6,000-$12,000, solid body, mechanically sound, usable daily.
• Excellent/low-mileage: $12,000-$20,000, restored or well-maintained, minimal rust, strong history.
• Concours/262C Bertone: $25,000+, rare, pristine, or the hand-built 262C coupe.

The 262C Bertone commands a premium but has unique (expensive) body panels. Unless you’re committed to that specific car, the 264 or 265 is a better buy.

Running Costs

Parts availability: Excellent. Most mechanical and suspension parts are shared with the 240, so they’re cheap and plentiful. PRV engine parts (timing chains, gaskets, sensors) are less common but still available.

Servicing: A straightforward service (oil, filters, plugs) is cheap. Timing chain jobs on the V6 are labour-intensive, expect $1,500-$2,500 if a shop does it. Diesel timing belts are $500-$800 done properly.

Insurance: Classic car policies are affordable if you’re over 25 and limit annual mileage. Around $300-$600/year for agreed value cover.

Fuel: The PRV V6 isn’t thirsty by ’70s standards but won’t match a modern turbo four. Expect 10-12 L/100km in mixed driving. The diesel is far more economical, 7-8 L/100km.

Which Variant?

Best buy: A 1987+ 264 or 265 with the B28 V6 and LH 2.2/2.4 EFI.

Why? The galvanised body won’t rot, the later EFI is more reliable than K-Jetronic, and the B28 is the most refined PRV variant. The 265 wagon is practical and slightly less common than the sedan.

Avoid: Pre-1985 cars unless you can weld or the body has already been restored. The 262C Bertone is beautiful but parts are unobtanium, only buy if you’re prepared for pain.

Diesel: If you want economy and don’t mind slower performance, a D24 diesel is solid. Make sure the timing belt has been done recently.

The Verdict

The Volvo 260 series is the 240’s more refined sibling, same bones, smoother engine, nicer trim. Buy a late-model (1987+) 264 or 265 with service history and a solid body, and you’ll have a comfortable, reliable classic that’s cheap to run and easy to fix.

Walk away from rusty early models unless you’re a welder. And if you hear a rattling timing chain on a PRV V6, keep walking.