We own a 2004 V70 T2.5 AWD Wagon and we like it a lot. Plain looking on the outside but not dower. Inside the materials all look pretty good after 12 years and 188k miles. Acceleration is a strong point while handling is capable but the bumps from the road transmit jolts and noise to passengers inside - not a luxury ride. In fact its bumpier and noisier inside than most non-luxury cars. That said its not terrible just not a smooth ride.
Seats are well crafted and very comfortable. The rear leg room is limited for a family car. My kids are now in their teens and we will need a car with a bigger back seat - not fair to sentence anyone over 5'6" to a long car ride in the rear of this vehicle. We can get another 5" of rear seat leg room in a Toyota Highlander. Storage is ample and the cargo capacity is excellent for a car. We can still pack for a 2 week vacation without a roof rack.
Reliability has been pretty good for a car this age. We did have a radiator failure that leaked coolant into the transmission (and transmission fluid into the radiator) - that could have been catastrophic if we had not caught it immediately (e.g. driven it for more than a few miles in that condition). Otherwise its been struts, engine mounts, 02 sensors, brakes etc - all normal wear and tear over 12 yrs 188k mi.
Being a Volvo lover ( '91 240/ '91 940 SE/ '98 V70/ '04 V70 T5 - soon to be par tof the family - '06 S80 AWD T5 ) . I ABSOLUTELY LOVE my '04 V70 - she's like an under- the - radar speed machine! and feeling completely safe and in control.
I can't say nothing ill of these girls.
There is a problem with the oil pan seals that requires attention! My 2004 v70 with 67k flashed the oil warning light twice for a second at a time and then a warning messge NO OIL PRESSURE STOP. 300 feet later I parked the car and then had it towed to the shop...started to place on tow and then to move into the garage....Result was the engine was gone! Oil level was checked after first warning light flash...full! Not real happy as I just bought the car....result is a replacement motor and the oil seals replaced before it was installed....My 2000 v70 never had seals replaced...still does not drip or burn oil at 200k....