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4X4
Based on the V70 estate, but with extra ground clearance and four-wheel drive, the XC70 is a halfway house between a conventional estate car and a fully fledged off-roader. On the plus side, you get the same comfort, practicality and clever use of space as in the V70, as well as the ability to venture a little further afield than your average estate car.
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The four-wheel-drive system also means the XC70 drives a little better than the V70, as it’s less prone to running wide when pushed hard through corners. However, don’t think that the XC70 is a genuine off-roader - it won’t manage much more than a rutted track off-road. Finally, despite the improvements, the XC70 is not that great on Tarmac, either, thanks to its vague steering and poorly controlled ride.
Running Costs
Compared with a standard V70 estate, the XC70 is considerably more expensive. However, it strikes the middle ground between its two most obvious rivals - cheaper than the Audi Allroad but dearer than the Subaru Legacy Outback. The diesel XC70 is by far the most fuel-efficient version, but both petrol and diesel models are more frugal than the equivalent Audi. Overall, in fact, the XC70 is cheaper to own than the Allroad: the Volvo has lower insurance groups and lower maintenance costs. The differences aren’t so clear cut next to the Subaru, but the Volvo is certainly not significantly worse (especially when you consider that the Outback has only petrol engines).
Labour rates and average repair bills are less at Volvo dealers than at Audi garages, and a leading warranty company tells us that Subaru repairs are, on average, more than those on Volvos.