Volvo XC60 T8 Twin Engine running costs
|Insurance group||Warranty||Service intervals||2018/19 company car cost (20%/40%)|
|42E||36 months / 60,000 miles||12 months / 18,000 miles||£1,814.40 / £3,628.80|
The Volvo XC60 T8 is on the pricey side, but that’s no different to any other premium SUV in this class. There's an incentive for buyers looking at a hybrid version, though, as this car gets a £2,500 government plug-in car grant that sweetens the deal.
With CO2 emissions of less than 75g/km, you won’t have to pay the London Congestion Charge if you travel into the centre of the capital, but remember to register your XC60 with Transport for London first.
The XC60's fuel economy is the main reason it's so cheap to run, though. Based on the average economy we’ve stated above, while it might cost just over £90 a time to fill the sizeable fuel tank at today’s petrol prices, strong efficiency means you’ll only spend around £1,200 over an average of 12,000 miles per year of driving. A diesel XC60 wouldn’t be able to match this figure.
Another benefit of the plug-in setup is that the CO2 emissions of 52g/km put the XC60 T8 in the second-lowest Benefit-in-Kind (BiK) company-car tax bracket, at 16%. Based on our pick of the range – R-Design trim – a higher-rate taxpayer will have to contribute £3,443 a year to run one as a company car.
An XC60 D4 R-Design would cost the same buyer £5,576 per year, highlighting just how much running a plug-in hybrid can cut your outgoings.
Volvo XC60 T8 Twin Engine insurance group
Insurance group ratings vary depending on the trim level you go for, but taking our pick of the line-up again, the XC60 will cost about the same to insure as a regular petrol or diesel XC60 model in the same specification.
On top of the specific battery warranty, all XC60s get a three-year/60,000-mile warranty. Like the eight-year battery warranty, this overall package of protection is fairly standard. You also get three years free roadside assistance that covers you Europe-wide, which is a nice bonus.
Volvo offers servicing packages for the XC60 T8 that you can tailor to your needs. This means you can choose the length of the package, while it’ll also depend on how many miles you do a year.
A three-year fixed-price servicing deal based on an average of 12,000 miles per year comes in at £1,025 up front, or you can pay for it monthly with an initial payment of £58, one payment of £279 then 19 payments of £36.
Low CO2 is a boon when it comes to road tax, so the XC60 T8 will only cost £15 to tax in its first year. Alternative-fuel vehicles such as this cost £130 in VED after the first year, but as the XC60 also costs more than £40,000 to buy, you’ll have to pay a £310 surcharge per year for the next five years, too, so it’ll cost £440 to tax in years two to five.
R-Design trim resists depreciation the best, which is partly why it’s our pick of the range. Our experts predict it’ll retain 50.7% of its value after three years/36,000 miles, which means this car will lose £26,547 over this period, so will be worth £27,323. While this might look steep, it’s actually better than many diesel models in this class.