Volvo XC90 T8 Twin Engine running costs

The Volvo isn't cheap by any stretch, but for such a powerful luxury SUV it promises fairly low running costs

Insurance group Warranty Service intervals 2019/20 company-car cost (20%/40%)
45 3yrs / 60,000 miles 1yr / 18,000 miles From £2,530 / £5,060

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 XC90 versions, but provided you plug in regularly that initial outlay will be offset by lower running costs.

CO2 emissions of less than 75g/km also mean you won’t have to pay the London Congestion Charge if you travel into the centre of the capital (until October 2021, at least), but remember to register your car with Transport for London first.

The XC90 T8’s electric range is the main reason it's cheap to run. If you plug in regularly and do mostly short journeys, you can save a fortune compared to non-electrified alternatives, but of course the petrol engine will be doing some 25-30mpg in normal mixed driving after you've run out of electric power.

Low CO2 emissions of 52-55g/km also make the XC90 a cheap company-car option for such an indulgent big SUV. It falls into the 19% BiK tax band, which makes it many thousands cheaper than a non-electrified diesel or petrol XC90. Mind you, the longer electric running and lower emissions of the BMW X5 xDrive45e mean the BMW undercuts the Volvo XC90 T8 on company-car tax. 

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

The XC90 is predicted to hold its value well, retaining around 54-57% (equating to a value of around £38-39,000) of its value after three years and 36,000 miles. That doesn't sound great, but by the standards of big SUVs it's not bad and it's better than the standard petrol or diesel XC90 models.