The Swedish SUV Buyers Keep Instead Of Trading For An X5

9 minutes reading

Saturday, 26 Sep 2026 02:00 0 6 autotech

For many of us, if we want a mid-sized SUV with some premium features, a BMW X5 fits the bill. Both older and newer models are available with some serious power, lots of room in the cabin, on-road prestige, and nice features, making it an easy choice if you are upgrading from a mainstream model.

Why XC90 Owners Are Skipping The X5

Front 3/4 action shot of 2016 Volvo CX90 T8 PHEV driving on sand

Volvo

The Volvo XC90 doesn’t just look good as a slightly more budget-friendly alternative to the X5; it also brings reliability, calm luxury, three rows of comfortable seating, a practical layout inside, and a stylish exterior. The 2026 Volvo XC90 has a starting price of $62,445 for the base trim, while the new X5 has a starting price of $69,750.

Volvo’s Understated Cabin Is Built To Age Gracefully, Not Impress At Launch

Rear 3/4 shot of 2016 Volvo CX90 T8 PHEV parked

Volvo has long been known for providing a quiet, serene type of plushness to the market. There are generally no flashy gimmicks, no in-your-face drama, and no features that try to fool you into thinking you are in a sports car when, in reality, you are in a mid-sized SUV. That kind of thing will matter in a few years’ time when things are looking a bit more tired and worn.

If you are looking for an SUV for the long run, Volvo models generally age very gracefully on the used market, thanks to simple yet classy designs, sensible tech, features you actually need in the cabin, and exterior designs that never look like they’re trying to shout about their presence.

Volvo XC90 T8 Packs 455 HP And Plug-In Power

One of the standout models from the XC90 lineup this year is the XC90 T8 AWD PHEV. Volvo says it has a starting price of $77,595, but that puts it directly in line with the new X5 xDrive50e, BMW’s PHEV mid-sized SUV flavor, which has a starting price of $77,450. At the center of what makes the XC90 T8 a solid choice is the powertrain it gets.

Under the hood is a 2.0-liter turbocharged inline-four paired with an 18.8-kWh battery, and an electric motor on the rear axle. Output is 455 horsepower and 523 pound-feet of torque. That translates to a 0–60 mph time of five seconds. In comparison, the new xDrive50e is more powerful at the top end (up to 489 horsepower) but has less torque on tap (516 pound-feet), and its 0–60 mph time is only marginally quicker, at 4.6 seconds.

The XC90 Fits Seven Where The X5 PHEV Only Fits Five

As standard, the XC90 comes with three rows of seating in a seven-seat configuration. A six-seat layout is also available, which sees the middle bench seat replaced with two captain’s chairs. Considering that it is a three-row luxury mid-sized SUV, all three rows are relatively roomy. Up front, you get 38.9 inches of headroom and 40.9 inches of legroom.

In the second row, there is 38.5 inches of headroom and 37 inches of legroom, while the third row offers 36.3 inches of headroom and 31.9 inches of legroom. The new xDrive50e only gets two rows of seating, with 40.8 inches of front headroom, 39.8 inches of front legroom, up to 39.4 inches of second-row headroom, and 37.4 inches of second-row legroom.

Shot of 2016 Volvo XC90 T8 PHEV rear seats

You also get more cargo capacity in a new XC90 T8 PHEV. With all the seats in place, there is up to 10.5 cubic feet of storage space behind the third row; with the third row folded down, there is up to 34.5 cubic feet of space, and with both the second and third row tucked away, there is 85.7 cubic feet of space. The new xDrive50e offers up to 33.9 cubic feet of storage space behind the second row and a maximum of 71.2 cubic feet with the second row folded away.

Used XC90 T8 Prices Change The X5 Math

Front 3/4 shot of 2016 Volvo CX90 T8 PHEV parked

For more space, comparable power and speed, and lower starting prices, a new XC90 T8 PHEV looks good compared to its BMW counterpart, but the used market makes it look even more interesting. According to Kelley Blue Book, the average used price of a base-trim T8 PHEV is just $40,000 and the top-tier trim (the T8 Recharge Dark Theme) is just $44,800.

The 2024 lineup has average used prices of between $44,100 and $50,500, and the 2025 model has average used prices between $67,500 and $73,900. Luxury SUV depreciation has done its thing here, and you still get the same level of luxury and plug-in powertrain.

Lower XC90 Prices Don’t Mean Lower Running Costs

Profile shot of 2016 Volvo CX90 T8 PHEV parked

The 2023 PHEV X5 (the xDrive45e) has an average used price of $41,300, while the 2025 xDrive50e has an average used price of $52,900, and the one-year-old model, $69,000. So there is a noticeable difference on the used market. However, five-year running costs tell a different story. Edmunds says the average five-year cost to own a PHEV X5 is $78,850; for a base-trim XC90 T8, it is $84,642.

The XC90 Saves On Maintenance But Loses $20,000 More To Depreciation

Front shot of 2016 Volvo CX90 T8 PHEV parked

Also according to the same Edmunds source, five-year insurance costs for an XC90 PHEV are roughly $4,700; for maintenance, $6,276; for repairs, $1,641; and for fuel, $11,866. By far, the biggest cost associated with it, though, is depreciation, which is to the tune of $42,500.

The plug-in X5 does out-price the PHEV XC90 in most places; for five years of insurance, it will cost you just shy of $5,700; for maintenance, a whopping $17,401; for repairs, $7,056; and for gas, $16,007. However, depreciation over five years is “only” around $22,500. If you are buying from new, especially, this is worth considering.

Where The Volvo XC90 T8 Falls Short

According to FuelEconomy.gov, the XC90 T8 can achieve 58 combined MPGe and will cost you, on average, $1,950 a year for gas and electricity per year. It has an 18.8-gallon gas tank, and filling it with gas only will cost you $100. This all translates to an average gas-tank range of 530 miles.

The new xDrive50e has a slightly better combined MPGe rating of 60, but a lower range of 440miles, and it will cost you slightly more per year to fuel up and charge, at $2,050. However, the XC90 T8 is not free of faults.

Shot of 2016 Volvo CX90 T8 PHEV interior showing front cabin

According to J.D. Power ratings, the 2026 XC90 gets 73 out of 100 overall, with a reliability rating of 68 out of 100, and a driving experience rating of 76 out of 100. The 2026 X5 is rated 80 out of 100 overall, with an 81 out of 100 reliability rating, and 83 out of 100 for driving experience.

According to owners, the hybrid system is another area where the XC90 can feel less refined than expected. Owners of the 2023–2025 models have reported hesitation, odd power delivery, warning messages, and occasional problems with the high-voltage system. Some have also needed multiple dealer visits to get to the bottom of the problem.

Then there is the infotainment system. The 2023–2025 XC90 T8 gets Google built-in on a portrait screen, with Google Maps, Assistant, Play Store apps, and wired Apple CarPlay. Owners have reported black screens, freezing, sluggish responses, and apps that don’t always function reliably. There is also a general dislike of having basic climate and audio controls buried in menus. The 2026 model gets a new 11.2-inch freestanding touchscreen, replacing the nine-inch unit in the earlier models, but it is still behind the xDrive50e’s 12.3-inch instrument cluster and its iDrive 8.5 14.9-inch display, which is considerably more organized and responsive.

BMW X5 PHEV Offers More EV Range

Profile shot of 2018 Volvo XC90 T8 PHEV parked

Profile shot of 2017 BMW X5 xDrive40e parked

Then there is the key consideration of having a PHEV SUV: all-electric range for stop-and-go driving in the city. The new xDrive50e gets a full-EV range of up to 38 miles; the XC90 PHEV gets just 32 miles.

Now that many of us are driving more through towns and cities, and not really using SUVs for their original purpose, the extra cost and maintenance concerns of a plug-in system should have a meaningful payoff. The XC90’s range isn’t bad, but it does fall considerably behind cheaper options, like the RAV4 PHEV, which can manage up to 52 miles on electric power alone.

What To Check Before Buying A Used XC90 T8

Front shot of 2020 Volvo XC90 T8 PHEV parked

Buying a new XC90 T8 PHEV is a strong choice if you are looking for substantial luxury at lower prices than a new plug-in X5, and buying a used one means the first owner has already absorbed the depreciation. You should check a few things, though.

There is one NHTSA recall for the 2025 model because of loss of brake function, so it is vital you make sure this has been addressed. You should also check the high-voltage battery for charging faults or warning messages, confirm the 12-volt battery isn’t draining, test the charging system, and make sure all hybrid-system updates have been completed.

The XC90 T8 brings Scandinavian character, generous space, and enough hybrid performance to make a family SUV feel lively without turning it into a rolling computer. A well-kept used XC90 T8 can represent excellent value, but you shouldn’t confuse affordable with smart; there is still a considerable amount of complex PHEV technology involved. If you find a model with the right history, or buy new and accept the depreciation in a couple of years, you can get a great deal without following the typical German formula.