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My family is full of Volvo nuts (myself included), and I've driven both a 2001 V70XC (now called the XC70) and a 2004 XC90. Really, they're geared for similar targets, the question would be: how SUV do you want to go? Personally, I love the XC70 more than the XC90, but if I had to be driving an SUV, an XC90 is a great choice. I just love wagons, and am not that much a fan of SUVs in general. They've both been used (and performed quite well) in the Rocky Mountains of CO. I'm personally rather skittish when it comes to driving on snow, but have felt very safe in both. The new XC70 is a 210ish HP engine using Volvo's new 2.5T engine, which is fantastic (I have an S60AWD which uses it, and it's awesome), but the XC90 can scale up to Volvo's T6 engine which is 250ish HP.
So I guess what I'm trying to say is: you can't go wrong with either, it's just a matter of how SUV you want to go. Personally, I say go with the wagon, but that's just me.
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