That's the exact XC70 I was trying to find when I was out buying mine! Looks like a well taken care of (from the pictures) two owner vehicle. Not a bad price either. If it drives fine, doesn't make any weird noises, and all the fluids look good then I'd give them $11,000-$11,500 and call it a day.
Your cup holder should fit, they didn't change the geometries of the dash between '01-'07.
I'd also recommend just listing your '01 on craigslist for like $5,000-$7,000, say it needs trans work, and use it to fund that '07. You will probably need to put work into the '07 from the get-go though. Can't forget it's still a Volvo. My '07 is at 80,000 miles and it's fine but now but I barely drive it and the CPO put in around $8,000 worth of various repairs in the last last 2 years. That was all stuff the first owner (a lessee) just didn't care to fix during their 4 years or 55K mile enjoyment of the vehicle.
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