Volvo S90 T8 Twin Engine running costs

The Volvo S90 T8 offers big saloon-car practicality and a beautiful interior, but the diesel versions are just as economical and cheaper to buy

Insurance group Warranty Service intervals 2018/19 company car cost (20%/40%)
44E 36 months / 60,000 miles 12 months £1,498.90 / £2,997.80

With a starting price of over £57,000, the Volvo S90 T8 Twin Engine isn’t a cheap car to buy, but with the exception of insurance, the running costs should be less expensive than other S90 models or rival products. It needs to be, because BMW 530e prices start from £46,000.

That’s because the T8 emits just 49g/km CO2, attracting a Benefit-in-Kind (BiK) rate of only 13%. Fuel economy is quoted at 117.7mpg, but in common with other plug-in hybrids, it’s best to take this with a pinch of salt.

In reality, you’re likely to see anything between 30 and 50mpg, depending on how you drive, although the ability to cover 28 miles in electric mode should lower fuel costs. The S90 T8’s CO2 figure means that it qualifies for the 100% Ultra Low Emission Discount (ULED), meaning it's exempt from paying the London Congestion Charge.

Volvo S90 T8 Twin Engine insurance group

All versions of the S90 T8 fall into insurance group 44, making them by far the most expensive S90 models to insure. Other S90s range from groups 28 to 37, depending on engine and trim level. Volvo offers its own insurance cover, guaranteeing the use of genuine parts and repairs covered by a five-year warranty.

Warranty

The S90 T8 is covered by Volvo’s standard three-year/60,000-mile warranty, but this can be extended to four-year/60,000-mile or four-year/80,000-mile cover for an additional price. The battery in the T8 Twin Engine is covered by an eight-year/100,000-mile warranty, with any material defects fixed for free within that period. However, in common with other electric vehicles and hybrids, the warranty does not cover a loss of battery capacity over time.

Servicing

The Volvo S90 T8 Twin Engine requires a service every 12 months or 18,000 miles, whichever comes sooner.

Road tax

There’s no road tax to pay in year one, but CO2 emissions of 49g/km and the high list price equate to £455 a year for five years from year two, dropping to £135 a year after that.

Depreciation

The T8 Twin Engine is likely to be a niche product in the UK. This might boost residual values, which tend to be low for luxury saloon cars but, however you look at it, a retail buyer is going to lose a lot of money on the S90 in the first few years. Partly for this reason, company car buyers will likely account for most S90 T8 buyers, so there could be some good used S90 T8 examples on the market in a few years.