Hyundai Ioniq 5 vs BMW iX3 vs Volvo XC40 Recharge: running costs and warranty

All three models have low running costs, including company-car tax, but the Hyundai’s lower insurance ratings and comprehensive warranty put it ahead here

Hyundai Ioniq 5

Something Hyundai is known for is one of the most comprehensive warranties in the business, and Ioniq 5 owners too get that five-year/unlimited-mileage guarantee. The BMW’s standard warranty package also works on an unlimited-mileage basis, but only for three years, while the XC40 is covered by Volvo’s three-year/60,000-mile warranty, which is pretty average.

But, like all electric cars, not only are service intervals for this trio longer than equivalent petrol or diesel-engined models, maintenance costs are generally lower, too. They’re all also exempt from the London Congestion Charge and road tax (VED) for the time being. Of this trio, the Ioniq 5 has the lowest insurance grouping – 41 versus 42 for the Volvo and 50 for the BMW. However, based on our representative quotes, that would result in only a 10% price difference between the Ioniq 5 and the priciest XC40, which we have here.

The BMW is the most expensive to buy as well. Our Premier Edition Pro example had a list price of nearly £61,000, however, the iX3 was facelifted in late 2021 and the new top-spec M Sport Pro versions now starts from close to £64,000. The XC40 Recharge Twin Pro, on the other hand, comes in just under £57,000, while the Ioniq 5 we tested costs less than £43,000.

All three qualify for the 1% Benefit-in-Kind (BiK) tax rate, making them extremely cheap to run as company cars. A 20% taxpayer will fork out only £84 a year to run a rear-drive Ioniq 5 in Premium trim, while the versions of the iX3 and XC40 we tested have similarly low annual BiK bills of £129 and £113 a year respectively. For the 2022/23 financial year, each will climb into the 2% BiK band, so those figures – and the gaps between them – will double, however, they each represent thousands of pounds saved in comparison to running a similarly priced diesel or even plug-in hybrid alternative.

When it comes to efficiency, the Volvo falls behind, as it returned just 3.1 miles per kWh during our time with it. That means it'll cost about £557 a year to charge up for 12,000 miles of driving, at a typical home energy cost of 13p per kWh. That’s compared to the Ioniq 5 and iX3, both of which achieved 3.5 miles per kWh. As a result it would cost from around £494 a year to cover 12,000 miles on the same energy tariff. Of course, those costs could be reduced even further by making sure you only charge up off-peak.

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