Today’s Range Rover could be described as the ultimate luxury car. It looks equally at home parked outside a Mayfair mansion unloading the weekly Harvey Nichols shopping as it does perched on a hilltop providing shelter on a shoot.

However, when the latest, BMW-designed incarnation was launched in 2002, it was saddled with a relatively aged diesel engine that wasn’t really capable of hauling a 2.5-tonne lux-roader.

The Rangie’s 0-60mph time of more than 12 seconds was so miserable that even humble hatchbacks would surge away from it at the traffic lights. The only way to avoid this sort of embarrassment was to opt for the 4.4-litre V8 petrol engine, although even the super-rich would turn up their noses at the £120 refuelling bills required every 350 miles.

By September 2006, though, Land Rover’s engineers had delivered the solution. Out went the 3-litre six-cylinder BMW turbodiesel, and in came a brand new 3.6-litre V8 twin-turbo diesel designed in house. Despite a modest increase in capacity, the new engine brought about huge changes. With its two turbochargers, power was boosted by some 50%, to 272bhp, and this was accompanied by massive torque of 472 lb ft. The impact on the driving experience bordered on the miraculous.

Now virtually as quick as the V8 petrol model, but with about 30% better fuel economy, the new TDV8 made petrol power virtually obsolete and set a benchmark which, to this day competitors struggle to better.

As part of the 2007 model-year enhancements, the Range Rover was given cosmetic changes that included a new dashboard and the Terrain Response four-wheel-drive control system, and upgraded air-conditioning. As a result, the Range Rover didn’t just stay ahead of the competition, it left them positively stuck in the mud.

At idle, the diesel engine is barely audible, and the usual telltale clatter of oil burners is noticable only by its absence. Pick up the revs, and from the satisfying growl that is created you could be forgiven for thinking this engine was in fact a petrol-powered V8.

In all other respects, the Range Rover maintains its peerless position as the ultimate luxury car, offering great ride comfort, a smooth six-speed automatic gearbox, acres of interior space, and, of course, that legendary off-road ability. It all conspires to deliver a certain feelgood factor that eludes virtually all other cars on the road, regardless of price.

Reliability and servicing

Secure the services of a good franchised dealer or independent specialist and you should enjoy a highly satisfactory ownership experience. Team up with a second-rate workshop, though, and that minor fault could become a frustrating, unreachable itch.

Despite the fact that build quality and reliability have improved in recent years, the Range Rover still has a few endemic weaknesses of which you should be aware.

The biggest potential expense is transmission replacement; while the gearbox is generally strong, problems with it have often been noted at around 100,000 miles. Front differentials can also be troublesome, and may start to grumble at about 70,000 miles, although they rarely fail without some advance warning, so listen out for unusual noises.

A review of the service history should reveal any heavy wear and tear on items such as brakes and tyres — possibly indicating a hard driving life. Cars with a patchy or missing service history should be avoided unless they’re going for a bargain price.

A dashboard service indicator tells you when the next service is due, but you should budget on needing a service once a year or every 15,000 miles. The size of each service varies, the smallest, the £500 oil service, alternating with larger Inspection 1 and Inspection 2 services, which cost £600 and £650 respectively. Be warned that even the oil-change service means a costly visit to a dealer.

The following are typical franchised dealer prices, and include parts, labour and Vat.

Tyres (for 19in rims) £370 each

Discs and pads Front £420, rear £380

Residuals

Demand for second-hand V8 diesels is strong, with residual values for a 2006 56-registered 3.6-litre being some £6,000 more than for the last of the 3-litre diesels registered just a few weeks earlier. While this gap will probably narrow as the car matures, there are good reasons why the newer engine is so sought-after.

All models are well equipped with leather upholstery, alloy wheels, an alarm system, CD player and — essential in a car of this size — parking sensors. Mid-grade Vogue models benefit from a superb touchscreen sat nav, while the top-spec Vogue SE has upgraded leather and a rear entertainment system.

Insurance and service costs are the same regardless of trim level, so model choice is down to your budget and needs. However, the higher-spec cars become better value as new-car premiums erode on the second-hand market.

Classic colour combinations with blue, green, silver and black exteriors and grey, brown or cream interiors work well, but be wary of heavily personalised models on oversized wheels, or cars that have unique colour and trim schemes, as these can be hard to resell later on.

OWNER’S VIEW

I like Towing and cruising ability, huge boot. I don’t like No seven-seat option, heavy on fuel.
TE, Cheltenham

VITAL STATISTICS

Model Range Rover TDV8 Vogue SE
Engine 3630cc, V8 turbodiesel
Power 272bhp
Transmission Six-speed automatic
Acceleration 0-60mph: 8.6sec
Top Speed 124mph
Fuel 25.1mpg (combined)
CO2 299g/km
Road Tax Band M (£405 a year)
Cost new now £72,535

NEED TO KNOW

Boot Massive boot is accessed via a tailgate with opening rear window
Dog guard On models fitted with a dog guard, check trim for bites and scratches
Fuel cap Filler neck is designed to prevent petrol being put into the diesel’s tank
Gearbox Super-smooth automatic gearbox has been known to give problems at higher mileages
Leather Look for worn hide on high-milers
Noise TDV8 diesel is very quiet but sounds like V8 petrol under full throttle
Satellite Navigation Touchscreen system is also found in Jaguars and works superbly
Servicing Due every 12 months or even sooner if you are a high-mileage driver
Suspension Air suspension system allows car to be raised and lowered for additional clearance, aerodynamic benefits at speed, or just for ease of entry. Check its operation to be sure this complex system works properly
Towing 3,500kg braked towing capacity remains on par with the best in class
Wheels Beware of extra-large alloys; 20in wheels shouldn’t be retro-fitted unless car has been equipped with a damped steering rack

THE ONE TO BUY

2007 57 Range Rover Vogue SE TDV8 with 20,000 miles. Pay £46,750 at a main dealer or £45,000 privately

OR FOR SIMILAR MONEY

2006 06 Porsche Cayenne Turbo S Tiptronic S
2008 58 Toyota Land Cruiser V8 D-4D Premium auto
2009 09 Audi Q7 4.2 TDI S-Line Tiptronic auto
2009 09 BMW X5 XDrive 35d M Sport
2009 09 Mercedes-Benz GL 420 CDI