The Volvo V60 is still one of the best-looking estates you can lease in 2026, but it's a different car from the frugal D2 diesel many drivers remember. Volvo no longer offers diesel. Today's V60 comes as a petrol mild hybrid or a plug-in hybrid, and at First Vehicle Leasing we think the T6 plug-in is the version most company car drivers should look at first.
Key Takeaways
- The UK V60 comes as a 197hp B4 mild hybrid or as 350hp T6 and 455hp T8 plug-in hybrids, in Plus or Ultra trim. List prices run from about £45,210 to £59,365 (2026).
- The T6 and T8 plug-in hybrids have up to 57 miles of electric range (WLTP) and emit 17-23g/km of CO2. Under HMRC's published rates, that puts them in the 10% Benefit in Kind band for 2026/27, though the exact rate depends on the CO2 and electric range figures for the version you choose.
- The B4 emits 143-156g/km, so its company car tax rate is roughly 34% to 37% in 2026/27.
- From April 2028, most plug-in hybrids from 1-50g/km move to a flat 18% rate. A three or four-year lease signed now will run past that change.
- Every V60 costs more than £40,000, so the £440 expensive car supplement applies in years two to six. On contract hire, road tax is normally included in the rental.
What Is the Volvo V60 Like to Drive in 2026?
The 2026 Volvo V60 is a quiet, comfortable estate that's at its best on the motorway. It isn't sporty, and the suspension can thump over potholes around town. You won't find a diesel in the range any more: every V60 is now petrol-based, as either a mild hybrid or a plug-in hybrid.
If you came looking for the old D2 Business Edition, that car is gone, along with every other diesel V60. Volvo also took the V60 off UK sale in 2023, when it briefly sold only SUVs, then brought it back in 2024 with a slimmer line-up. There are two trims now, Plus and Ultra.
What hasn't changed is the character. The seats are excellent over long distances, there's very little wind noise, and the steering is light, which makes the car easy to drive in town. The cabin is a little old-fashioned next to newer rivals, and the central touchscreen feels small. Volvo has upgraded the Google built-in system with a faster Snapdragon processor, though, so it responds much more quickly than it used to. And you still get proper buttons for jobs like adjusting the mirrors.
Which Volvo V60 Engine Is Best: B4, T6 or T8?
For most people who can charge at home, the T6 plug-in hybrid is the best V60. It has plenty of power, up to 57 miles of official electric range and a much lower company car tax rate. The B4 mild hybrid suits drivers who can't charge or who mostly drive long motorway runs. The T8 is very fast, but few drivers need that much power.
A mild hybrid (MHEV) uses a small 48-volt system to help the petrol engine and can't be plugged in. A plug-in hybrid (PHEV) has a much larger battery that you charge from a socket, so it can drive on electricity alone for short trips. WLTP is the official laboratory test used for economy, emissions and range figures.
| Feature | B4 mild hybrid | T6 plug-in hybrid | T8 plug-in hybrid |
|---|---|---|---|
| Power | 197hp | 350hp | 455hp |
| Drive | Front-wheel drive | All-wheel drive | All-wheel drive |
| Official electric range | n/a | Up to 57 miles | Up to 57 miles |
| CO2 (WLTP) | 143-156g/km | 17-23g/km | 18-23g/km |
| BIK rate 2026/27 | Roughly 34% to 37% | 10% | 10% |
| Best for | High motorway mileage, no home charging | Company car drivers and home chargers | Drivers who want maximum performance |
So is the plug-in hybrid worth the extra?
It depends on whether you'll charge it. The T6 costs more to buy, but if most of your trips fit within its electric range and you charge overnight, you'll use very little petrol. Carwow averaged 88mpg in a T6 over three months with regular charging. Its on-board charger is limited to 6.4kW, so a full charge from a home wallbox takes roughly five hours. It can't use DC rapid chargers, though, so public rapid charging won't speed things up. If you won't plug in, the B4 is simpler and more economical on long runs.
How Big Is the Volvo V60's Boot?
According to Carwow's Volvo V60 review, the B4 has a 519-litre boot and the plug-in hybrids have 481 litres. Figures vary slightly between sources depending on how the space is measured. Either way, that's competitive with premium rivals such as the BMW 3 Series Touring, though the Skoda Superb Estate is bigger.
The load area is square, with a low floor and no lip, so heavy items slide in easily. There's a pop-up divider to stop shopping rolling around. The main complaint is the 40/60 split rear seat: a 40/20/40 split would be more flexible for long loads. The low roofline also limits tall items. Rear legroom is good for two adults, but the plug-in's battery runs down the middle of the car and eats into the centre passenger's footroom.
If you tow, the T6 is rated to pull up to 2,000kg. Some mild hybrid versions have lower limits, so check the exact specification before you order.
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Check my eligibilityHow Much Company Car Tax Will a Volvo V60 Cost in 2026/27?
Under HMRC's published company car tax rates for 2026/27, the V60 T6 and T8 sit at 10% Benefit in Kind (BIK), because they emit 1-50g/km and have 40-69 miles of electric range. The B4, at 143-156g/km, falls in the 34% to 37% bands. That gap makes the plug-in by far the cheaper company car. HMRC sets these rates by CO2 and electric range bands rather than by model, so check the official figures for your exact specification: a version with less than 40 miles of electric range would fall into a higher band.
BIK is the tax you pay for having a company car available for private use. It's calculated from the car's P11D value (its list price including VAT and delivery, before any discount), multiplied by the BIK rate, then by your income tax rate. You can check your own figure with HMRC's company car tax calculator.
Illustrative example only: a T6 Plus with a P11D value of £52,000 at 10% gives a taxable benefit of £5,200. That's £1,040 a year for a 20% taxpayer and £2,080 for a 40% taxpayer. A B4 at £45,000 and 34% gives a taxable benefit of £15,300, which is £3,060 a year at 20% or £6,120 at 40%.
Look ahead before you sign. HMRC's published rates show this band rising to 11% in 2027/28, in line with the one-point annual rises of recent years, but rates can change in future Budgets, so check the current tables before you commit. From April 2028, most plug-in hybrids from 1-50g/km move to a flat 18% whatever their electric range, and 19% from 2029/30. A four-year lease starting now would pay the higher rate for its final years. If your employer offers electric cars through a scheme, compare the V60 with an EV at 4% BIK in 2026/27. Our salary sacrifice page explains how that works.
What about Business Contract Hire (BCH)?
With Business Contract Hire (BCH), a company leases the car and deducts the rentals as a business expense. HMRC rules disallow 15% of the rental for corporation tax on cars above 50g/km, so the plug-in V60 avoids that restriction and the B4 doesn't. VAT-registered businesses can usually reclaim 50% of the VAT on rentals where the car has some private use. There's more on this in our business car leasing section.
How Much Does It Cost to Lease a Volvo V60?
V60 lease rentals change daily, so we don't quote a figure here. Your rental depends mainly on the list price (about £45,210 to £59,365), the car's forecast value at the end of the term, your contract length, annual mileage and the size of the initial rental. The current V60 model page always shows live deals.
A lease rental covers the gap between what the car costs to buy and what it's forecast to be worth at the end of the term (its residual value), plus interest charges. At First Vehicle Leasing we buy in volume, so the starting cost is lower while the forecast end value stays the same. That narrows the gap you fund.
You also hand the residual value risk to the funder. Some reviewers have said the V60 may be near the end of its life, and that's worth bearing in mind. If it's worth less than forecast when you hand it back, that's the funder's problem, not yours.
With Personal Contract Hire (PCH), you choose an initial rental of 1, 3, 6 or 9 months' worth, followed by fixed monthly rentals. The initial rental isn't a deposit and isn't refunded. Road tax, including the expensive car supplement, is normally built into the rental, and the DVLA records the funder as the registered keeper.
What Are the Best Alternatives to the Volvo V60?
The strongest alternatives are the larger Volvo V90, the roomier Skoda Superb Estate, the sharper-handling BMW 3 Series Touring and, if you can go fully electric, the Volvo EX60. Which suits you depends on whether you care most about boot space, how the car drives or how little company car tax you pay.
Volvo V90
A bigger, more upmarket estate for drivers who need extra rear space and a longer load bay. Browse Volvo V90 lease deals.
Skoda Superb Estate
More boot and rear legroom for less money, though it doesn't feel as premium. See Skoda Superb deals.
BMW 3 Series Touring
Better to drive on a twisty road and available as a plug-in hybrid. Compare BMW 3 Series deals.
Volvo EX60
Volvo's electric mid-size SUV, taxed at 4% BIK in 2026/27. It suits drivers ready to give up petrol entirely. View Volvo EX60 deals.
Should You Lease a Volvo V60?
Lease a V60 if you want a comfortable, safe, good-looking estate and prefer it to an SUV. Our leasing experts recommend choosing the engine to match how you'll use the car:
- Company car driver with home charging: choose the T6 Plus for the 10% BIK rate in 2026/27, and plan for the 18% rate from April 2028.
- Mostly long motorway journeys, or no off-street parking: choose the B4 and keep things simple.
- Boot space comes first: look at the V90 or Superb Estate before you commit.
- Lowest possible company car tax: an electric car such as the EX60 will beat any plug-in hybrid.
- Before you order: set your annual mileage realistically, because excess mileage charges at the end of the lease add up quickly.
Not sure which V60 fits your mileage or tax position? Our team can compare the B4 and T6 side by side on the same term and mileage.
Or call First Vehicle Leasing on 0333 003 3325. We've arranged leases for over 25 years, we're authorised and regulated by the FCA, and we're BVRLA members.
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Company Car vs Car Allowance: Which Is Better?Business Car Leasing (BCH) ExplainedWhat Does It Cost to Charge an EV? UK Costs ExplainedBEV vs PHEV vs Hybrid: Which One Suits You?View all guidesFrequently Asked Questions
Sources
- Volvo V60 Review 2026 - Carwow
- Volvo V60 estate review - What Car?
- Calculate tax on company cars - GOV.UK / HMRC
- Vehicle tax rate tables - GOV.UK / DVLA
Written by Andy Bell, First Vehicle Leasing.
