WHEN the first XC90 appeared in the UK back in 2002 some potential buyers admired this trendsetting new SUV in the showroom, before telling Volvo dealers 'it's not expensive enough'.

Which shows there are always people with more money than sense. The company bonus culture was responsible and Volvo had never experienced anything like it.

How did the sensible Swedes react? They quickly developed a UK-only version with all the bells and whistles on board, at a price that over-compensated company buyers thought let everyone know they could afford one - easily.

No such problem with the all new XC90, built high and handsome in a gently understated way and priced from £45,750 to £63,705. Nobody would describe that as underpricing, but do you get what you pay for?

The short answer is yes; buyers who head for the XC90 at the bottom of the price ladder will not only be buying by far the expected most popular version, but they'll end up with a car that comes well enough equipped to need little else adding.

That's rather rare in a part of the market where car makers know there is a large fortune to be made from the options' list. More of that later.

Let's look at the newcomer in more detail. It is that genuinely rare machine - a vehicle new from tip to stern, with new engines. The whole thing must have cost Volvo's Chinese owners a large fortune to design and develop. Just as well it was worth it.

Built in Sweden, it radiates subtle Nordic charm in a way that a rival like BMW's X5 would hardly comprehend. Elegant good taste emanates from everything, taking in a bold new grille and body lines deliberately kept simple.

Inside, the good taste continues, beautiful build quality obvious everywhere and a mere eight buttons indicating that all the other controls, for things like sound system, heating and ventilation and the satellite navigation have been loaded onto a big, clear touchscreen.

Every XC90 destined for the UK, for the moment at least, will have all-wheel drive, automatic transmission and seven seats, with enough room in row three for two adults up to 5ft 7ins tall. All seven seats have thinner than usual seat backs, without sacrificing any of the long distance comfort long associated with Volvo, and helping free up useful extra leg room.

Calling the least expensive Momentum level 'basic' does the car much less than justice, as it comes with all of the above, as well as satellite navigation, a tailgate that opens with a waggle of a foot below the rear bumper, a multiple-adjustable and electrically powered driver's seat and leather trim. And don't forget a 10 speaker sound system and big, 19ins alloy wheels too.

So, miles away from basic in anyone's language. Pay more and there are things like bigger wheels and added styling flourishes, but the entry level will suit most people just fine.

So will the new diesel engine, that pulls quietly and has enough pep to push this big car along at a satisfying lick, recording a reasonable 34mpg in the process on some demanding North Yorkshire roads.

Rather quicker still and dearer (from £53,745 for an Inscription model) is a petrol engine with 320 horsepower and the ability to explore licence losing speeds very easily, recording an indifferent 26mpg in the process. They won't sell a lot of those.

The diesel is a different matter. Here is a very serious new contender if you want a big SUV in your life.