On the face of it, the car isn't over-priced at all. A friend recently sold his XC for £1800 on an ebay classified ad to the first viewer and it had done 186k and was certainly no minter. Another couple hae passed through ebay recently - also 2wd - for around £1800 to £2k.
The problem might be that at the moment, you're only advertising it to an audience of people who all have P80 platform cars already and, times being what they are, forum members aren't necessarily building collections or amassing fleets of 850s and V70s anymore. Your location is also against you.
Maybe a few photos to show folks what they're missing might help too? If you want to advertise selectively, I would consider car and classic.com. It doesnt tend to be a playground for messers in my experience and will have an appreciative audience for cars like this.
Hope helpful, Nick.
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