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Q: Coolant system problem Overflow Overheating on 1999 Volvo C70

Just got a 1999 Volvo C70 yesterday it has 125K, it began with an estrange wooo when ac on, last night driving home then the low coolant light came on when the car was at rest. This morning drove it on the highway for an hour the ac stop shooting cold air and temperature went high up, I pulled over and coolant was coming out of the cap. I put more water drove home with no ac, got home and the now shows the engine check light on. What can be happening? and how can I fix it? I done some research here and there on the web, and the responses had been some how economical,the reservoir or lid, the thermostat, a sensor, the serpentine belt, clean the radiator, or bad hose.
But today I was quoted 2000+ from a mechanic that says that the only reason why there is overflow is because the head is bent, scratched or crack and the probably the water pump also, and basically a new engine, new gaskets, etc...
Due to air and boiling water from the reservoir. I was shock by his quote and telling me that it will need 8 days of labor,etc.. I really don't trust his answers since I left the car there for a couple of hours and all he did was put more water on the reservoir while the car cold and on, and showed me the water shooting up. The car runs fine has lots of power and no scarey noise or rattle on the engine just a woo high pitch sound from the reservoir.
Is he correct and I am screwed!! or could there be another answer... should I try everything else first?
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This sounds accurate. A good tech can determine a bad head gasket in 10-15 minutes. You don't need to take apart the engine to do it. I advised you yesterday to take the car BACK to the people who sold it to you and ask for your money back. It is illegal to sell you a damaged car, it is called fraud!
I am trying to return it but his argument is "it was sold as is". He says he will look at it with his mechanic and let me know what can be done, his mechanic says it might just be a small leakage in the system that is allowing air in it... but he will look at it tomorrow, will see what happens, thanks so much I will keep trying to return it and get my money back.
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