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If you have replaced the tires to a bigger or smaller size other than OEM this could be the problem. The 240 was in production for many years and went through many production changes. The first two following are linked, the third more rare:

1. The speedo drive (in the gearbox) has been changed for the wrong type. Or the gearbox has been changed for an alternative.

2. The speedo has been changed and doesn't match the gearbox drive.

3. Basically, the speedo works by spinning a magnet inside a cup connected to the needle. Over time, through the collection of dust and through mechanical wear, the coupling drag can change and cause the needle to be 'dragged' further round the dial.

Ticking, needle 'bounce' and wander are associated with a dry or badly routed cable. Periodic oiling of the drive cable inner cures it.

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Q: Why does my 1985 Volvo 240 speedometer read 10 mph too fast?
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