In-depth reviews

Volvo XC90 Recharge T8 hybrid running costs

The XC90 Recharge isn't cheap by any stretch, but for such a powerful luxury SUV it promises fairly low running costs

Updated Volvo XC90
Rating
Running costs Rating
Insurance groupWarrantyService intervals2020/21 company-car cost (20%/40%)
44-453yrs / 60,000 miles1yr / 18,000 milesFrom £2,023 / £4,045

The Volvo XC90 Recharge 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 XC90s, 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'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 63-69g/km also make the XC90 a cheap company-car option for such an indulgent big SUV. It falls into a very low BiK tax band, which makes it many thousands cheaper than a non-electrified diesel or petrol XC90.

Volvo XC90 Recharge T8 insurance group

Insurance-group ratings vary slightly 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, 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 £140 after the first year, but as the XC90 also costs more than £40,000, you have to pay a £325 surcharge the first five times you tax it, so it’ll cost £465 to tax in years two to six.

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