Volvo XC90 T8 Twin Engine running costs

Fuel economy that matches a supermini means this big, seven-seat Volvo XC90 T8 will cut your running costs significantly, although it’s costly to buy

Insurance group Warranty Service intervals 2018/19 company car cost (20%/40%)
45E 36 months / 60,000 miles 12 months / 18,000 miles £2,293.60 / £4,587.20

The Volvo XC90 T8 is on the pricey side, but that’s no different to any other premium seven-seat SUV, regardless of whether it’s a plug-in hybrid. It does cost a bit more than the petrol and diesel versions, but this is offset by lower running costs. However, 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 car with Transport for London first.

The XC90 T8’s economy is the main reason it's cheap to run. Based on the average economy Auto Express recorded, 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 £1,875 over an average of 12,000 miles per year of driving. A diesel XC90 certainly wouldn’t be any cheaper, while this figure will decrease the more you can charge up.

Plug-in hybrids have another benefit: CO2 emissions of 56g/km here put the T8 in the second-lowest Benefit-in-Kind (BiK) company-car tax bracket of 16%. Based on our pick of the range – Momentum trim – a higher-rate taxpayer will have to contribute just £4,000 a year to run one as a company car. An XC90 D5 Momentum diesel would cost the same buyer £7,214 per year, highlighting just how much running a plug-in hybrid can cut your outgoings.

Volvo XC90 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, it’ll cost around £630 per year to insure our middle-aged sample driver with three points on their licence. This is about the same as for a regular petrol or diesel XC90 model in the same specification.

Warranty

On top of the specific battery warranty, all XC90s get a three-year/60,000-mile guarantee. 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.

Servicing

Volvo offers servicing packages for the XC90 T8, where owners can choose the length of the package, but maintenance costs 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 a year comes in at £1,025 up front, or you can pay monthly with an initial payment of £58, one payment of £279 then 19 payments of £36.

Road tax

Alternative-fuel vehicles such as this attract a rate of £135 after the first year, but as the XC90 also costs more than £40,000, you have to pay a £320 surcharge the first five times you tax it, so it’ll cost £455 to tax in years two to six.

Depreciation

Momentum trim resists depreciation well, which is partly why it’s our pick of the range. Also, you get everything you’d realistically need and it’s more affordable. Our experts predict it’ll retain 51.6% of its value after three years/36,000 miles, which means this it'll lose £30,271 over this period and will be worth £32,299. While this looks steep, it’s actually better than many diesel models in this class.