We have a 2010 XC70 with the D5 205ps auto system. It is a really nice car to drive, not quite as 'tight' as BMWs and Audis, but with the raised suspension what can you expect. The engine has bags of pull and with twin turbos there is no noticeable lag. the 6 speed box is smooth and does not seem to get confused with what ratio it should be in, but you also have the manual over-ride that also will change gear for you should you forget! Sound system is great and the USB port means that we can just insert a 4gb memory stick in random play and away you go. The sat nav is okay but when the van is hitched I would still use my programmable Garmin 1490T so that I can use my preferred route. On a mix of rural A roads and M ways with some motoring in towns but not heavily congested I am now getting 37mpg solo with 14k on the clock. If I drive specifically for low fuel consumption I can get 40-43mpg without causing a tailback of traffic, One thing I have had to get used to is that there is no dipstick and the oil level is checked electronically. Some D5s have had issues with the sump level rising due to repeated failures to regenerate the DPF. Volvo are not alone.Volvo have issued recalls to modify the engine fuelling characteristics and also the advise is that the oil level display should be between half and three quarters, not full. However much will deppend on driving style and journey type and mine as stayed on the full line throughout and I have had no DPF regen warnings. For short trips I use the Note at 65-70mpg anyway ( and for some solo long ones too). Insurance fully comp with two named drivers and 180 days European cover is under £220 pa which is just slightly more than the Sorento and not that much more than the Note!
Prior to the XC70 I had a Sorento which was ace, but the Volvo tows much more smoothly and with better economy. Where the Sorento gave 22-24mpg in UK (1400kg) the XC70 is nearer 29mpg. In France I may even get over 30mpg. It's no off roader though; whereas we could take the Sorento anywhere the XC70 is more limited, but I knew that when I bought it. Tyres can be pricey some start at around £100 but the Continental Contact 4X4 with M&S rating are from £160 and rising. But being V rated you can understand it. However they do give good traction off wet grass/mud and in this winter's snow and ice. I think you could get away with H-rated if the insurers were happy and then use something like Scorpion STR or even Geolander ATS, but at the penalty of increased tyre noise and reduced wet and dry grip/braking.
One aspect that has been constricting compared to all our previous tow cars is that the rear seat bases do not lift up and allow the awning, poles foood crates etc to sit behind the front seats and allow the dogs to have the load area. So we have to drop the rrear seats and crate the dogs, but as the head height is lower than the crate height the dogs crate cannot sit immediately behind the front seats, so its a bit of a mix to place the dog crate and also to ensure that heavy items do not sit on top of the lowered rear seat backs and rsik damaging the leather. But we knew the XC70 would not be as flexible as the Sorento when we bought it, but it works for us.