The cost of the new Volvo XC90

[MichaelE]

I had my local Volvo dealer call me this week and ask if i was interested in the New XC90 and arrange a test drive when available etc?
He then proceeded to go through spec's and costs etc and i couldn't believe the diesel R design in a few quid shy of £50k !!
This is a huge jump in price from the old one?

 

[RogerL]

Look at the prices of it's 7-seat SUV competitors - Audi Q7, BMW X5, Jeep Grand Cherokee, Land Rover Discovery, Range Rover Sport.

A Hyundai Santa Fe goes up to £35,000 these days!

 

[PaulT]

Volvo are going upmarket with the new XC90 and competing with similar cars from Mercedes, Audi and BMW.

 

[seth1]

And obviously you replied "yes i,ll have two at that money"
Maybe they are competing,but not so much in the engine department.For 50k i,d expect a bit more than a 2.4 diesel.

 

[MichaelE]

They have made a Volvo XC90 First Edition which is limited to 1927 priced £68k and this sold out in 2 days.
It may have gone upmarket but residuals will be more than the other top marques.
I just think it is a big hike when they were selling the old one for £32k

 

[RogerL]

Part of the price hike is due to the old XC90 being so old and so past it's "sell by" date that low pricing was the only way to sell it - after all the development costs had long been paid off.

If you liked the old XC90, get one - at £32k it's better value than a £35k Hyundai.

The new XC90 is a model I'm watching for the next 2-3 years to see how well it goes,

 

[RogerL]

And obviously you replied "yes i,ll have two at that money"
Maybe they are competing,but not so much in the engine department.For 50k i,d expect a bit more than a 2.4 diesel.

It'll be 2.0 only - more powerful and considerably more economical than the old 2.4.

 

[seth1]

The d5 is still listed as the top spec diesel,all 223 hp of it.Your correct in saying a four cylinder 2 litre is available,but in a car of this price and size?My own view is that the d5 is now under speced for this calibre of car.

 

[RogerL]

The 223bhp D5 may be the highest output diesel available at launch of the all-new XC90, there also a 400bhp T8 hybrid available for those who need/want performance - but don't expect it to stay that way for long, it's a brand new engine range after all.

The old model discounted price is down in Hyundai Santa Fe territory, about £30,000 in XC90 ES trim - not where Volvo sees it's traditional market so the only way is up.

Of course D5 doesn't mean a 5-cylinder diesel - Volvo dropped that a few years back and D5 refers to a diesel power range.

 

[seth1]

Of course,but D5 did mean a 5 cylinder diesel engine of which the 2.4 is.Infact even when volvo refered to the D5 there was still an option of a 5 cylinder badged as a "2.4" which ran along side a badged "d5".The differance was the 2.4 was a lower powered version,163 hp agaist 185 hp if i remember correctly.The latest badging seems a bit daft really,it gives people the impression of a 3 cylinder diesel.

 

[RogerL]

Of course,but D5 did mean a 5 cylinder diesel engine of which the 2.4 is.Infact even when volvo refered to the D5 there was still an option of a 5 cylinder badged as a "2.4" which ran along side a badged "d5".The differance was the 2.4 was a lower powered version,163 hp agaist 185 hp if i remember correctly.The latest badging seems a bit daft really,it gives people the impression of a 3 cylinder diesel.

I have to agree - the D5, meaning 5-cylinder diesel was so well known that replacing it with D5 meaning power range 200-249bhp was/is condusing.

In 2010 Volvo changed their engine branding nomenclature so that it is independent of engine size and number of cylinders. The letter "D" designates diesel and "T" petrol. Letters are followed by a number that dictate the level of power. The table below list the lower limit power required for each emblem in 2010.

Diesel bhp
D8 300 >
D6 250-299
D5 200-249
D4 165-199
D3 135-164
D2 115-134
D1 90-114

Petrol bhp
T8 325 >
T6 275-324
T5 225-274
T4 175-224
T3 150-174
T2 125-149
T1 100-124

 

[MichaelE]

In my personal opinion i think Volvo have over priced this? This is now into Audi, Bmw LR and Merc territory and i think the badge will defeat it?
You only have to look at the VW Toureg ? great car but people say £50k for a VW that is why residuals are poor.
It will end up with discounts being applied to make it sellable? Which affect its secondhand values etc.
I think its very difficult for car companies to try and compete with the tried and tested brands or presumed top brands, branding is very important?
When the new Kia Sorrento was released it was way over priced and it started to attract big discounts to sell it, people seem to decide if the badge is worth it?
I think the engine is powerful enough it maybe a little course compared to some of the bigger capacity ones.
Engine badging doesnt mean a thing these days
I recently drove a Mercedes Ml250 and although over 200 bhp i found i worked it harder compared to the 350 version, the end result not such a refined drive.

 

[RogerL]

I guess this depends where you think Volvo should be - in the days of Ford Premier Automobile Group (PAG), and before, Volvo was on a par with Jaguar and Land Rover - so what's changed?

The XC90 is a 7-seat SUV, as I posted earlier Hyundai Santa Fe and Kia Sorento are now priced where the old XC90 used to be, this is because Hyundai/Kia quality improves with each new model and they're no longer a budget brand, on price or quality. AFAIK their discounts are just normal 10-15%, often less as they're both in short supply. The all-new 7-seat LR Discovery Sport (Freelander 3) above that so I'm not at all surprised at the new XC90 pricing.

The old XC90 had to be priced low to keep sales moving, it was old and uneconomical by current standards - I guess some owners will think this is the correct market position and be faced with a big increase in replacement costs.

Personally, the XC90 is on my rather long shortlist when I change cars - together with the BMW X5, Mercedes-Benz ML, Land Rover Discovery 5 and the Jaguar SUV - I want to go upmarket from my present Hyundai Santa Fe so I know it's going to cost me a lot more.

 

[MichaelE]

A lot does come down to badge perception?
It does make the out going model extremely good value as it is a good car? Will make them more desirable?
There has been reported that huge investment has been put into Volvo for the future platforms so i guess some of that has to be recouped?
I will certainly test drive one, i do think it looks a lot like the current X5.

 

[RogerL]

I think Ford actually deserve far more credit than they get for preserving the heritage and integrity of Jaguar, Land Rover and Volvo at a time when they would have otherwise gone to the wall like Rover or Saab AND finding them "good homes" when it became clear that Ford's own problems meant they couldn't fund the huge investment needed in both JLR and Volvo for new engines and new platforms.

If the new XC90 is as good as they hope, then its residual value will be high to match the high list price, making the old model even better value.