Volvo's Most Affordable 2026 XC60 Does One Thing, And It Does It Well

Volvo calling its XC60 SUV a "capable all-rounder," is both accurate and refreshingly self-aware. While at first read it seems like the automaker might be underselling things, but really, it's spot on. Instead of bloviating or disproportionately flaunting any of the XC60's abilities, Volvo represents it as it is: a competent and versatile luxury SUV. Not only is it a spot-on characterization of the XC60's performance, refinement, and comfort levels, but it's also a perfect way to talk about the SUV's humble charm.

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Already sleek and attractive (gotta love those "Thor's Hammer" headlights) the XC60 remains understated in the style department. It adds some mild exterior updates for 2026, including new wheels, a refreshed front grille, and some new paint colors. On the inside it gets a new 11.2-inch center touchscreen that, at first glance anyway, makes it a bit more competitive with luxury rivals. With the option of two different powertrains and a number of luxury amenities, the XC60 is a strong choice amongst midsize luxury SUVs.

The XC60 B5 gets its power from a turbocharged 2.0-liter four-cylinder engine paired with a 48-volt mild hybrid system. The mild hybrid makes 13 horsepower on its own, but the combined power totals 247 hp and 266 lb-ft of torque. There's a plug-in hybrid version of the XC60 with a whopping 455 hp, but it's also much more expensive (more on that in a bit).

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The B5 version of the XC60 gets respectable fuel economy ratings from the EPA. They have it at 26 mpg combined (23 city/30 highway). That's slightly less than the BMW X3, but still ahead of most trims of the Audi Q5. During my test, I was able to beat the XC60's city rating but not quite meet the combined fuel economy estimate, but I suspect that was mostly caused by the sort of heavy traffic that Los Angeles is known for. 

If you want significantly better fuel economy, the T8 plug-in hybrid is rated at 28 mpg combined after its initial 36 miles of EV range runs out, but the B5's still respectable in its class.

The torque from the B5's powertrain comes on early, scooting the XC60 quickly off the line. Give thanks to the mild-hybrid system there for a little low-speed boost. The rest of the way up the powerband, the 2.0-liter engine is adequate, without being stunning or feeling particularly performance oriented. Remember that capable all-rounder bit? Yeah, it feels that way in the power department especially. Quick passing maneuvers won't be executed easily in the XC60 with a bit of delay between pedal input and actual acceleration, but if you plan things properly, it'll get around slow-movers without any issues.

Getting the XC60 to hustle through corners is no chore. It handles well, staying mostly flat through turns and changing direction quickly, even if steering feedback isn't exciting or engaging. Steering and suspension can both be adjusted, choosing between Soft or Firm for either. Firm mode felt a bit too artificially harsh over bumpy roads, so I spent most of my time driving the XC60 in Soft mode instead.

The base XC60 Core is fairly priced for the segment of luxury SUVs it competes in. It starts at $50,995 (including $1,295 destination fee). That trim level includes features like wireless smartphone charging, heated front seats, and a pretty full suite of driver aids like adaptive cruise control, blind-spot monitoring, and lane-keep assist. The mid-level Plus trim adds a 360-degree parking camera, ambient interior lighting, and an air purifying system for the cabin, bringing the price up to $55,595.

The top-trim Ultra has a starting price of $60,945. As-tested price for the XC60 you see here? $68,770 (including $1,295 destination fee). That's a far cry from the base $51k price tag, but there are all sorts of amenities to gawk at. Stuff like a head-up display, four-zone climate control, ventilated front seats, extra lumbar adjustments from the front passengers, and Nappa leather upholstery are all part of the Ultra. My test vehicle also had key upgrades like optional air suspension and massaging front seats. 

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Remember the plug-in hybrid version I mentioned earlier? Well, that starts at over $62,000 and its top trim, the high-performance Polestar Engineered, has a price tag that crests $80,000 before adding any options. Sure, the plug-in hybrid (also called the T8) is more powerful, faster and has nearly 40 miles of EV range, but the B5 doesn't cost nearly as much.

The interior of the XC60 feels properly spacious. There's a ton of headroom, legroom, hip room and shoulder room in all of the major seating positions and squeezing five adults in the cabin for a road trip is totally possible. The door pockets are deep and there's lots of space in the center console for your big purse. Behind the second row of seats there's 21.6 cubic feet of cargo space, and that more than doubles when you fold the seats down, maxing the XC60 out at 49.8 cubic feet. That'll be more than enough for several large suitcases. 

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Up front, the XC60's seats are extremely comfortable. At a stand-still, they're some of the best in the class. The seats are bolstered well, made with excellent materials and the heating/ventilation functions work quickly. The massaging function works quickly and shuffles sections of your back around well enough, but don't expect to arrive home from your evening commute feeling exponentially more relaxed in your neck and shoulders — they aren't powerful enough to do that kind of work. 

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Once the Volvo is underway, however, things get a bit less comfortable. The optional 22-inch wheels translate a lot of sharp impacts into the cabin, which is especially annoying in a city with as many broken roads as Los Angeles. I'd go for the 20-inch wheels instead and save myself $1,475 along with the annoyance of a stiff ride.

The 12.3-inch driver display and the 11.2-inch center touchscreen have excellent, extremely legible graphics and they work well together in providing all the information the driver needs. Smartphone connectivity worked well for me and the Volvo system has the added benefit of Google's built-in systems for users that like accurate voice prompts. The touchscreen is asked to do a bit too much though, including several key climate control functions (more on that in the next section).

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The standard stereo in the top-level XC60 Ultra is a Harman Kardon unit, but this particular test vehicle came with the upgraded 1,410-watt, 15-speaker Bowers & Wilkins stereo. It's a $3,200 extra that didn't particularly wow me. Audio quality was impressive, but not flawless, but the maxed-out volume left the most to be desired. To put it plainly: it just didn't get loud enough for me. And while it isn't exactly a tech issue, the Volvo's sunroof controls had no labels, so I had to search for them and guess at which button did what.

Constantly looking down for the right touchscreen buttons to control the climate settings is a big headache. A small row of buttons would solve this problem, even if it damaged the aesthetic ever-so-slightly. On top of the distracting act of selecting different climate functions on the touchscreen, you also have to press multiple buttons to operate one of my most frequently-used functions: fan speed. 

First, press the fan button, then press up or down. Both controls are on the touchscreen, doubling up the time I take looking away from the road. A slightly smaller font on the touchscreen or putting in a few additional top-menu items on the screen would alleviate a bit of this problem, so maybe it's an issue that can be addressed in the future.

My biggest issue with the climate systems in the Volvo was the near shutting-down of the A/C. At stop lights, when the auto-stop-start system would kick in, the XC60's air conditioning would turn almost completely off, barely pushing out any air at all. Even when I took my foot off the brake pedal, ready to rejoin the rest of the moving cars on the road, the system would delay a few seconds before pumping cold air back into the cabin. On a hot day, especially when the cabin is hot from sitting in the sun, that's a pretty big drawback.

The XC60's biggest frustration is the difficulty of using its main interfaces. It's not quite as bad as the interface in the Polestar 3 that Chris Davies and I both recently had troubles with, but it's not ideal for any luxury product. What's more, the XC60's touchscreen-based climate controls are frustrating and distracting, dragging down what is otherwise a high-class cabin experience. The steering wheel (which thankfully has clear, well-labeled switchgear) is something of a salve to these problems, but it's not a total cure. 

The XC60's interior is spacious and built with lots of top-tier materials. The seats are comfortable and the ride is quiet, even on the too-large wheels with their skinny tires. The powertrain won't light your hair on fire, but I don't know too many people that are looking for tire-roasting capabilities in their understated mid-size SUVs anyway. For that kind of performance, take a look at something a bit more fire-breathing like the BMW X3 M50 or the Mercedes-AMG GLC 43. If you want cool, calm, collected motoring though, take a closer look at the XC60. It feels like a proper, upscale luxury product every time you get in and on pretty much every journey you take.