We show that inductive limits of virtually nilpotent groups have strongly quasidiagonal C*-algebras, extending results of the first author on solvable virtually nilpotent groups. We use this result to show that the decomposition rank of the group C*-algebra of a finitely generated virtually nilpotent group G is bounded by 2 · h(G)! − 1, where h(G) is the Hirsch length of G. This extends and sharpens results of the first and third authors on finitely generated nilpotent groups. It then follows that if a C*-algebra generated by an irreducible representation of a virtually nilpotent group satisfies the universal coefficient theorem, it is classified by its Elliott invariant.