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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

Existing XC60 owners will benefit from big improvements in the way the new model drives, but steeper prices mean you certainly pay a premium for it. The cost of the entry-level model has risen by nearly £4,000, while the range-topping T8 Twin Engine models are over £63,000.

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.

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The frugal D4 diesel comes with an entry price of around £40,000 for the well-equipped Momentum model, and emits 157g/km of CO2. Hybrid versions aside, it's the most economical option in the range, delivering up to 47.1mpg. The more powerful B5 diesel produces 161g/km, with fuel efficiency down slightly at 45.6mpg.

Fuel consumption in the petrol-powered variants suffers quite considerably - the front-wheel-drive B5 is only able to return a claimed maximum of 38.2mpg and CO2 levels are also higher at 168g/km. You'll definitely need more trips to the filling station if you opt for the 296bhp B6 petrol model, as it'll only achieve 33.2mpg on the combined cycle.

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The XC60 also gets the T6 and T8 Twin Engine plug-in hybrid versions, featuring a 2.0-litre petrol engine and electric motors. Company drivers will find this especially appealing, with CO2 levels between 55g/km and 73g/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.

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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 Recharge PHEV Expression 5dr AWD Auto
  • Gearbox type
    Semi-auto
  • Price
    £49,900

Fastest

  • Name
    2.0 T8 Recharge PHEV Polestar Engine 5dr AWD Auto
  • Gearbox type
    Semi-auto
  • Price
    £62,475
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