This should be your goal.
The 740 was made from 1984 to 1992 so you have a wide range of choices. The motor you want is the 2.0-2.3l turbo that is an in line (or slant) 4 cylinder. That engine is what makes the car special. Volvo is known for making reliable cars (at least in the past - I honestly don't know how they are nowadays but I assume they're okay) that would last up to 4-500k miles. The 5-cylinder in the 850 is very reliable aswell but that car is front wheel drive. It, too, has a fast turbo version that I have written about in the past.
But getting back to the 740, that motor, which is called a 'redblock,' can take up to 30 psi of boost on stock components. Yes, you read that right. It can actually support that load. I believe the 2.0l version is better able to handle that boost.
You can buy the car in relatively good condition for a little over a thousand dollars right now but you will need to make sure that everything is up to date and maintained. Make sure the basics like timing belt are done but also look for a car that hasn't been abused too much if you're gonna go high in boost. Remember, it's an old car so you will have to do everything you can to get it in the best condition possible.
Again I say, anything above 16psi or so is going to be rough for the motor and this motor is the one to handle it but it has to be running right.
Once you get it to that point, though, you will have a mean drag machine AND it can cut corners. I never mentioned that the 200s and 740s are rear-wheel drive. You can have 250hp easily on stock components with a do-it-yourself boost controller. You can decide where you want to go from there. A reinforced block, pistons, etc would be best. Anything to make the motor tougher so you can pull more horsepower out of it. Those types of upgrades will also prevent you from blowing your engine.
The stock transmission can handle about 300hp before you have to upgrade it but that number is not bad at all from a 4-cylinder.
I used to be obsessed with this car but somewhere along the way, I got a Lexus. Which is gonna be parked for a couple weeks because I just found out that neither of the two previous owners have ever maintained it besides changing the oil, I guess. This car has about 220,000 miles and it has the original timing belt. Can you believe that? You should change it way before 150k! And I wouldn't be surprised if the spark plugs are originals. I have to basically do the works - water pump too, distributor, wires, etc. That IS a testament to the reliability of the Lexus LS400 however. Before I suddenly lost 90% horsepower, it was driving like new. I'll get it back on the road.
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