VOLVO is mounting a successful challenge to the established residual values premium upper sector kings with the new S60 compact executive saloon. Cars like the BMW 3-series and Mercedes-Benz C-class set the benchmark for RVs in this class, but the latest figures from used values experts show the Volvo S60 to be equal to its rivals and significantly better than the current Audi A4.

The latest figures from Glass's Guide AutoProVision predict a forecast residual value of 46% for the S60 2.0T S after three years/ 60,000 miles. Bill Carter, AutoProVision editor, said: 'Volvo has scored a direct hit with this car. It's fast, refined, quiet, comfortable and safe, has good build quality and provides all-round value for money. From experience, the allure of well-established brands in this sector is not as strong as it used to be - buyers are looking for something new, fresh and different.'

According to CAP Monitor, the S60 2.0T S is predicted to be worth 45% of its original value after three years/60,000 miles. This is only one percentage point behind the Mercedes-Benz C180 Classic and BMW 318i SE, while the Audi A4 1.8 SE will retain 33% of its list price. Mark Norman, editor of CAP Monitor, said: 'At last Volvo can seriously compete with its rivals. The S60 has the specification, engine line-up and build quality that buyers want, and will be something of a rarity compared with some of the other cars which compete in this expanding sector.'

Earlier in its development, Volvo presented the S60 alongside its leading competitors to 50 leasing company pricing managers, as well as CAP, Henley Systems, Emmox and Glass's Guide. Based on their recommendations, Volvo made changes to its specification, engine range and retail price to guarantee it a strong presence in the new and used car markets.