It may be cheaper just to buy another car (same one) and transplant good from bad, then sell the rest on ebay.
You'll get a lot more money from the parts than you will scrapping one car on it's own!
Otherwise you have the risk of buying a second hand engine with no confirmed mileage and no guarantee that the transplanted engine won't have any running issues. At least if you buy another car, you can see the mileage AND more importantly, drive it and check the running of it before buying it.
Also, your dead car will be off the road for a very long time, depending on how quickly you can get an engine and how quickly the garage are prepared for the transplant.
Not to put a dampener on things, but a mate of mine blew his V70R up in February when the oil pump failed. Totally ruined the shell bearings and crank journals before he had a chance to stop as he was on a motorway.
His car is still on a ramp as we speak as he just couldn't buy a used 2.5R lump with confirmed mileage and confirmed running ok. Not a single scrapper would guarantee it. So he ended up buying a used S60R with a knackered gearbox for £2300 and trailering it down the country.
A new engine from Volvo is about £7000 and as Tim has already told me, even Volvo were sometimes fitting the wrong piston rings from factory, so it would still need the head and sump removed to confirm or replace the rings.
Obviously a new 2.0 5 pot is not £7k, but I doubt you'll get little change out of £5500.
For the complete lack of aggro, time off the road and cast iron guarantee that the end result will be a good one, I would kiss goodbye to your C70 and just buy another one mate, only this time, buy a C70 T5
Oh, to answer part of your question about rebuild.....A new Crankshaft is over £1000 from Volvo and that's without a set of shell bearings, piston rings, timing belt kit, etc, etc, etc....
Unless you have more money than sense, a total rebuilt is out of the question and totally not worth it on a 2.0l engine.)
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