In-depth reviews

Volvo XC60 review - MPG, CO2 and running costs

Diesels are more frugal on longer journeys, but greener T6 and T8 plug-in models offer big company car tax savings

Customers looking towards XC60 ownership will benefit from big improvements in the way the new model drives, but steep prices mean you certainly pay a premium for it. The range starts at almost £41,000, while the top-spec Polestar-Engineered T8 Twin Engine model is now over £64,000.

It’s still cheaper and better equipped than many rivals, while improved residual values should soften the blow for private buyers swapping out of an PCP deal on the old XC60 and into a similar arrangement on the new car.

The B4 diesel with front-wheel-drive produces 162g/km of CO2, while opting for the all-wheel-drive version means emissions rise to 167g/km. Fuel economy figures are 45.5mpg and 44.8mpg, respectively. The more powerful AWD B5 diesel variant is only slightly less efficient, with Volvo claiming 44.1mpg.

Fuel consumption in the petrol-powered variants suffers quite considerably - the front-wheel-drive B5 is only able to return a claimed maximum of 38.1mpg on the combined cycle, and CO2 levels are also higher at 168g/km. You'll definitely need more trips to the fuel station if you opt for the 296bhp B6 petrol model, as it'll only achieve an average of 34.0mpg.

The XC60 also gets the T6 and T8 Twin Engine plug-in hybrid versions which feature a 2.0-litre petrol engine and electric motors. Company drivers will find this especially appealing, with CO2 levels between 55g/km and 64g/km. The list price is steep, but if your company will pay that, it should save you a small fortune in tax.

Insurance

Insurance premiums for the XC60 will not be cheap. The entry-level D4 diesel model with 187bhp sits in group 33, while the 232bhp B5 oil-burner in top Inscription Pro trim, occupies group 40. The T8 Polestar Engineered plug-in hybrid delivers a total output of 399bhp and as such receives a higher insurance rating of group 44.

Depreciation

The XC60 performs reasonably in terms of holding on to its value. On average it retains around 44% of its list price over 3 years and 36,000 miles. The plug-in hybrid models tend to fare a little better than the rest of the range at between 48% to 52%, while the 296bhp B6 petrol is not only thirsty for fuel and expensive to insure, it's also the worst at maintaining value with just a 39% return against its new price after 3 years.

Next Steps

Which Is Best

Cheapest

  • Name
    2.0 T4 190 Edition 5dr Geartronic
  • Gearbox type
    Semi-auto
  • Price
    £36,600

Most Economical

  • Name
    2.0 T6 RC PHEV Inscription Expression 5dr AWD Auto
  • Gearbox type
    Semi-auto
  • Price
    £50,525

Fastest

  • Name
    2.0 T8 405 Hybrid Polestar Engineered 5dr AWD Gtrn
  • Gearbox type
    Semi-auto
  • Price
    £63,875

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