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1981 Volvo 740 Series Overview, Reviews, Ratings & Specs

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Cathleen V | December 29, 2025
The 1981 Volvo 740 Series, part of the larger 700 series introduced in 1982, was a rear-wheel-drive executive car produced by Volvo. Available primarily as a sedan and a spacious wagon, it represented Volvo's move towards a more luxurious and substantial offering. Key trims often included the base 740 and the more upscale 740 GLE. Its enduring popularity stems from its reputation for robust build quality, exceptional safety, and comfortable, utilitarian design that appealed to families and those prioritizing practicality.
The Good

The 1981 Volvo 740 Series excels in reliability and comfort, offering a smooth ride and spacious interior. Its robust, classic design appeals to those seeking timeless style and a sense of security, while its practical utility and enduring build quality provide excellent long-term value.

The Bad

What to watch out for includes potential rust issues, especially in areas exposed to salt, and aging electrical components. The automatic transmission can sometimes be a point of concern if not properly maintained. Fuel economy, while not terrible for its era and size, isn't a strong suit compared to modern vehicles.

1981 Volvo 740 Series: Quick Overview

  • Engine Options: The 1981 Volvo 740 Series was primarily offered with gasoline engines. The most common was the 2.3-liter inline-four cylinder engine. Later models and certain trims could also feature turbocharged versions of this engine or larger displacement options within the 700 series family. For the 1981 model year specifically, the focus was on the B23E, a naturally aspirated 2.3L inline-four, and potentially the B23FT, a turbocharged variant available in some markets.
  • Horsepower: Naturally aspirated versions typically produced around 110-120 horsepower, while the turbocharged variants could offer significantly more, often in the 150-180 horsepower range, providing a noticeable performance boost.
  • Fuel Economy: Official EPA estimates for the 1981 Volvo 740 Series varied depending on the engine and transmission. Generally, expect figures in the range of 18-20 MPG in city driving and 24-27 MPG on the highway for naturally aspirated models. Turbocharged models would likely see slightly lower figures due to their performance orientation.
  • 0-60 Times: Naturally aspirated models would typically take around 10-12 seconds to reach 60 mph. Turbocharged models offered a more brisk acceleration, often achieving 0-60 mph in the 8-9 second range.
  • Towing Capacity: While not a primary focus for passenger cars of this era, the Volvo 740 Series, especially the wagon variant, possessed robust construction. With proper trailer hitch and braking systems, it could likely tow moderate loads, perhaps in the 1500-2000 lb range, suitable for small trailers or recreational equipment, though specific factory ratings are not always readily available for this older model.
  • Trim-Level Features:
    • 740 GL: Base trim, often featuring power steering, power brakes, adjustable steering column, cloth upholstery, and basic instrumentation.
    • 740 GLE: Higher trim, typically including more creature comforts like air conditioning, power windows, power door locks, upgraded interior materials, a better stereo system, and sometimes alloy wheels.
    • Optional Features: Depending on the trim and market, options could include cruise control, sunroof, leather upholstery, heated seats, and automatic transmission.

1981 Volvo 740 Series Specifications

Vehicle Information
Year 1981
Make Volvo
Model 740 Series
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Type Wagon
Category Compact Car
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Made In Sweden
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What Problems Does the 1981 Volvo 740 Series Have?

The 1981 Volvo 740 Series, as an early model in the 700 series lineage, shares some common concerns with its successors. One of the most frequently reported issues across these vehicles is related to **rust**. Because they were built with robust steel, areas like the wheel arches, rocker panels, and the undercarriage are susceptible to corrosion, especially in regions with harsh winters and road salt usage. Thorough inspection for rust is paramount when considering a used 740.

Another area that can require attention as these cars age is the **electrical system**. Components like the alternator, starter motor, and various sensors can fail over time. Issues with the wiring harness, especially in older, unmaintained vehicles, can lead to intermittent problems or complete failure of certain features. The climate control system, including the blower motor and air conditioning components, can also be a source of repair needs.

The **fuel injection system**, particularly the Bosch K-Jetronic mechanical system found in many naturally aspirated models, can become less precise with age. Issues like clogged injectors, failing fuel pumps, or leaks in the fuel lines can affect engine performance and fuel economy. Turbocharged models can also experience problems with the turbocharger itself or related components like wastegates and boost control systems.

While specific recalls for the 1981 model year are less documented than for later, more mass-produced years, the general reliability of Volvo's engines and drivetrains is a strong point. However, like any vehicle of this age, **maintenance history is crucial**. Neglected oil changes can lead to engine wear, and infrequent transmission fluid flushes can contribute to automatic transmission issues. The rear main seal is also a known leak point on some of these Volvos.

Long-term reliability is generally excellent for the 740 Series if well-maintained, with many examples exceeding 200,000 or even 300,000 miles. The core mechanical components are incredibly durable. The primary concerns revolve around age-related wear and tear, particularly in the areas mentioned above.

How long will the 1981 Volvo 740 Series last?

Based on owner data and common experiences with well-maintained examples, the 1981 Volvo 740 Series is renowned for its exceptional long-term durability. It is not uncommon for these vehicles to comfortably achieve 200,000 to 300,000 miles, and many have surpassed this significantly. This longevity is a testament to Volvo's robust engineering and the quality of materials used. However, reaching these high mileage figures is heavily dependent on consistent and proactive maintenance. Owners who adhere to regular oil changes, fluid flushes, and address minor issues promptly will find their 740 Series can provide decades of reliable service. Conversely, vehicles with neglected maintenance will be more prone to age-related weaknesses, particularly rust and electrical gremlins, impacting their overall lifespan and increasing repair costs.

What Technology & Safety Features are Included?

The 1981 Volvo 740 Series represents a period where technology in cars was focused on functionality and safety rather than complex infotainment systems. Built-in tech was relatively basic by today's standards. Entertainment typically consisted of an AM/FM radio, often with a cassette player as an optional upgrade. Higher trim levels might have offered more speakers for improved audio quality.

Driver-assistance features were virtually non-existent in the modern sense. There were no adaptive cruise control, lane-keeping assist, or blind-spot monitoring systems. The focus was on driver control and situational awareness. Standard features included power steering for easier maneuverability and power-assisted brakes for effective stopping power.

Safety was, and always has been, a cornerstone of Volvo's design philosophy. The 1981 740 Series incorporated many advanced safety features for its time. These included a robust unibody construction designed to absorb and dissipate impact energy, reinforced side-impact beams within the doors, a collapsible steering column to protect the driver in a frontal collision, and three-point seatbelts (front and rear). Head restraints were standard, contributing to whiplash protection.

Optional safety features could have included anti-lock braking systems (ABS) on some higher-end models or later production runs within the 700 series, though less common on the initial 1981 models. Some models might have offered fog lights for improved visibility.

Crash-test ratings for vehicles from this era are not directly comparable to modern IIHS or NHTSA tests, as methodologies have evolved significantly. However, Volvo vehicles of this period consistently received commendations for their structural integrity and occupant protection, often outperforming their contemporaries in frontal and side impact simulations conducted by Volvo itself or independent testers of the time. The 740 Series was engineered with a strong emphasis on protecting its occupants, making it a leader in safety for its era.

What Colors Options are Available?

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1981 Volvo 740 Series Prices and Market Value

When new, the 1981 Volvo 740 Series would have been priced in the mid-to-upper range for its class, likely starting around $15,000-$20,000 depending on trim and options, placing it as a premium offering. As with most vehicles of this age, the initial depreciation was significant. However, the 740 Series has a unique resale value trajectory. While base models in poor condition might sell for a few hundred dollars, well-maintained examples, especially wagons or those with desirable features, can fetch anywhere from $3,000 to $8,000 or more. Factors affecting resale value include condition, mileage, maintenance history, rust prevalence, and the presence of original documentation. Enthusiast interest in Volvos of this era also plays a role in sustaining or even increasing values for pristine examples.

1981 Volvo 740 Series Cost of Ownership

Owning a 1981 Volvo 740 Series can be surprisingly economical, particularly regarding insurance and maintenance. Insurance premiums are generally low due to its age and safety record. Fuel costs are moderate; while not the most fuel-efficient by modern standards, it offers reasonable MPG for its class and era. Maintenance can be affordable if you utilize independent Volvo specialists or are mechanically inclined, as parts are generally readily available and robust. Repair costs can escalate if significant rust or electrical issues arise, but routine maintenance is straightforward. Overall, it's considered an economical and rewarding vehicle to own, especially compared to newer, more complex cars.

1981 Volvo 740 Series Fuel Efficiency

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1981 Volvo 740 Series Insurance

Insurance for a 1981 Volvo 740 Series is moderately priced, reflecting its status as a Wagon with strong safety ratings and
reasonable repair costs.

How Does the 1981 Volvo 740 Series Compare to Other Wagon?

The 1981 Volvo 740 Series competed in the executive sedan/wagon segment against vehicles like the Mercedes-Benz W123/W124 series, BMW 3 Series (E21/E30), Audi 100, and American offerings such as the Ford Granada or Chevrolet Celebrity.

Performance: In terms of performance, the 740 Series, especially naturally aspirated models, was generally more focused on comfortable cruising than spirited driving. Its rivals, particularly BMW and Mercedes-Benz, often offered more engaging handling and quicker acceleration, especially with their inline-six engines. The turbocharged 740 models closed this gap considerably, offering competitive acceleration.

Features: Feature-wise, the Volvo 740 was known for its emphasis on safety and practicality. While rivals like Mercedes-Benz might have offered more advanced luxury appointments and higher-quality interior materials, the 740 provided a spacious, comfortable cabin, often with excellent visibility and robust build quality. Audi offered sophisticated front-wheel-drive technology and sometimes more advanced features for the price.

Reliability: Volvo's reputation for reliability, particularly mechanical durability, was a significant strong point for the 740 Series. While Mercedes-Benz also boasted legendary reliability, their repair costs could be considerably higher. BMWs from this era, while offering superior driving dynamics, could be more prone to maintenance issues if not meticulously cared for. The 740 Series generally offered a simpler, more robust mechanical package.

Price: The 740 Series was typically positioned slightly below its German luxury rivals in terms of initial price, offering a strong value proposition for those seeking European build quality and safety at a more accessible cost.

Alternatives:
  • Similar: The Volvo 240 Series is a direct predecessor and similar in its robust, utilitarian appeal but less refined and luxurious. The Audi 100/200 offered a more modern FWD platform and often advanced technology.
  • Better (depending on priorities): For pure driving dynamics, a **BMW 3 Series (E30)** would be superior. For ultimate luxury and prestige, a **Mercedes-Benz W123** (if found in good condition) is a strong contender. However, for a blend of robust reliability, safety, practicality, and value, the Volvo 740 Series remains a compelling choice that often surpasses its rivals in sheer longevity and ease of ownership.

Final Verdict: Is the 1981 Volvo 740 Series a Good Wagon?

The 1981 Volvo 740 Series is ideal for pragmatic buyers who prioritize safety, durability, and practicality over outright performance or cutting-edge technology. It's a fantastic choice for individuals or small families seeking a dependable and comfortable car that's inexpensive to maintain and own. It's definitely worth buying, but almost exclusively as a used vehicle. Buying a well-maintained example, especially a wagon in good mechanical condition with minimal rust, is key. While base models offer solid transport, the GLE trims provide a more comfortable and feature-rich experience. Enthusiasts who appreciate classic Scandinavian design and robust engineering will find immense satisfaction, provided they understand its age and potential for age-related maintenance.

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Cathleen V

Cathleen is an exceptional freelance writer covering hot topics in the automotive world from a gearhead's perspective. Her articles delve into various aspects of automotive technology and history, offering readers detailed insights into engine performance, reliability, and maintenance. Through her engaging and informative writing, Cathleen provides valuable information to automotive enthusiasts and consumers alike, helping them make informed decisions about vehicle maintenance and purchases.