Volvo’s new XC40 premium compact SUV has been given competition-beating residual values by Cap HPI and KeeResources.

The RV guides have positioned the XC40, Volvo’s first entry into the compact SUV sector, ahead of its two main premium German rivals, the Audi Q3 and BMW X1.

The Volvo XC40 D3 Momentum in manual guise is estimated to be worth 43% of its cost new price after three years and 60,000 miles according to Cap HPI, and 46% according to KeeResources.

That compares with 36% and 42% for the equivalent Audi Q3 Sport and 38% and 44% for the equivalent BMW X1 SE respectively.

The equivalent T3 model is valued at 45% of its cost new price after three years and 60,000 miles according to Cap HPI and KeeResources.

Both used value guides valued the equivalent Audi Q3 Sport at 39%, while Cap HPI valued the equivalent BMW X1 SE at 33% and KeeResources at 41%.

Graeme Oswald, remarketing and total cost of ownership manager at Volvo Car UK, said: “Our larger 90 series cars, as well as the new XC60, have paved the way for these strong residual values, and it’s a fantastic achievement that our new compact SUV has been so well received by the industry.

“Strong residual values mean lower monthly contract hire and personal leasing rates, which make a car more competitive with fleet and retail customers alike.”