Auto Parts: Volvo V70 XC keeps BREAKING!!!, volvo v70 xc, 2001 volvo v70


Question
QUESTION: I bought a 2001 Volvo V70 XC on Thanksgiving day, 2008.  I bought it for a great price (I thought) and it's beautiful - I loved it.  I also bought it knowing it needed bearrings in the front differential.  The rear drive shaft had been removed because of this problem.  Within a couple of weeks it became hard to drive, acting like the tranny was going, so
I ended up replacing the entire front differential since they don't sell the bearrings separate - $2,000 in parts and labor.  500 miles later the AWD falls out, my mechanic tows it for free and contacts Volvo to warranty the part, which they do, but add on that the AWD gear axle ( or something like that) needs to be replaced at the same time, another $1000.  As soon as I get it back, it has a loud clunk at 50 mph, and feels like it sort of jumps at the same time.  I left a message with my mechanic, who never got back to me. . .
3,000 miles after the last time, the AWD 'fell' out again - going 60 mph on the interstate.  I had a helluva time trying to get Volvo to warranty the part again - I am not even sure which one they replaced - I think the drive gear - then they decided to do it after my mechanic couldn't find any reason it should keep failing except it was faulty parts.  
now - ONE DAY after getting it back a third time, it began a noise like a wheel bearring, then a terrible deep growl with the brakes, so I brought it to a tire shop, they said it sounded like the tranny - brought it (barely) to a transmission specialist, where they said the noise came from, none other then. . .the front differential.

NOW - I am a single mom of three and spent basically everything I had on this car and the repairs.  My mechanic said he couldn't work on it for free anymore, and claims Volvo won't warranty it anymore.  It is sitting in my driveway while I am using really questionable borrowed vehicles.  I do not know where to start - I am calling Volvo in the morning to see if they can still warranty it, but I figure I will have to get it towed there (30 miles) and have them look it over before they'll do anything, then hopefully can borrow the money to get it replaced through the dealership, unless they discover WHY this keeps breaking.  I've always had used cars, mainly Subarus, that cost under $2000, and last forever.  I knew Volvo repair was costly, but I also assumed that when you drop $3000 on repairs that it would fix the problem.  HELP!  
1.  Do you have any idea why this AWD keeps breaking
2.  Is my mechanic legally liable?
3.  Is Volvo legally obligated to warranty the part?  the receipt from my mechanic said "no warranty" - is that even legal???  I have not called the mechanic yet, because I have no idea what to say!!  What do I need to tell him, if anything?  

Any advice will be welcome
Thanks!!

ANSWER:      Oh, my heart goes out to you.  First, promise me that you will ask me before you buy another car, 'cause I would have definitely warned you off of this one.  If you had the front differential replaced, and it failed again, then that guy is liable, depending on the laws in your state.  You'll have to hire a lawyer and sue him, though, so that's probably not going to get you anywhere.  I can't imagine that Volvo would warranty a vehicle this old with this kind of trouble.  Anything's possible, though, so I would try to talk to them about it.  Don't call the dealer, call Volvo Customer Relations directly.  On old 4WD American trucks it was practical to drive with the rear driveshaft disconnected.  Your truck (car, really) has a differential in the transfer case that has been spinning its ass off trying to compensate for the fact that the rear wheels aren't connected.  This is the root of your problem, I'm sure.  My advice, find the cheapest way to get rid of the car and start over with another Subaru.  They never break, as I'm sure you're aware.

---------- FOLLOW-UP ----------

QUESTION: Yup - I learned my lesson with 'high end' autos - but do you think there is a way to correct the damage done by having the AWD disconnected in the first place?  If the transfer case is replaced, shouldn't it work??  I'm only trying to get back the money I've put into this nice looking piece of junk so I can at least get a decent used car. . .and I'm not the suing type, unless they really deserve it, and I'm not sure who, if anyone, is at fault here - perhaps Volvo for charging ridiculous prices for parts made in hong kong and china. . .

Answer
    Sure, all of this stuff can be fixed, but you have to weigh the cost against what an eight-year-old Volvo is worth.  Volvos are famous for two things: high repair costs and low resale value.  You need to find an honest independent mechanic who is capable of doing this work and get a thorough and complete estimate on the cost of repairs, then compare that to what your car is worth.  If the repairs are a significant percentage of the car's resale value, you might want to consider taking the car to the auction and washing your hands of the difference.  If you want to find a good mechanic, ask the guys at your local parts store (not Pep Boys or any other chain store, go to a REAL parts store where they actually know what they're doing), they will know which of their customers is honest and knowledgeable and will be happy to send you his way.  Good luck with all this.