Not all entry-level luxury SUVs deliver the upscale experience buyers expect, but this one does. With refined design, smooth performance, and thoughtful features, it punches well above its weight in the luxury segment.

Step inside, and you’re greeted by a cabin that feels anything but entry-level. High-quality materials, intuitive tech, and a minimalist aesthetic create an environment that rivals more expensive models. On the road, it offers a composed ride, confident handling, and just enough power to feel spirited.

What really sets this compact luxury SUV apart is how effortlessly it blends a premium feel with everyday usability. It’s comfortable, stylish, and practical, making it an excellent choice for buyers who want upscale features without stretching their budget.

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Volvo’s XC40 is Reasonably Affordable For a Luxury Crossover

Volvo is a brand that doesn’t necessarily carry all that much clout in the luxury world, with people generally opting for flashier options. Despite the Swedish brand’s low-key approach, we think that they develop some of the most impressive premium vehicles on the market. Even their most affordable crossover, the XC40, clearly demonstrates this, and it is more affordable than a lot of its rivals.

2025 Trims and Pricing

The Volvo XC40 has one of the lowest starting prices in the subcompact SUV segment, with many of its core rivals costing a couple of thousands higher. Even more impressive is the fact that the Swedish crossover comes so well-equipped, with a plethora of standard features that come as extra-cost options if you were to go for its competitors. This includes a bevy of safety and driver assist features.

The Core model comes pretty stacked in terms of features for the price, and we wouldn’t blame you if you wanted to stick with the most affordable model. However, if you’re looking for the high-end features that truly define the luxury segment, then the Plus is the way to go. It tacks on things like high-quality leather upholstery, a panoramic sunroof, and a striking Orrefors crystal gear selector, among other things.

Changes For 2025

Volvo hasn’t made all that many changes to their subcompact SUV for the 2025 model year. They have, however, added a new paint option for you to choose from, namely Sand Dune, which replaces Bright Dusk. The Core model no longer comes with the Dark Theme interior, but it does gain power-folding rear seats as a standard feature instead. They have also renamed the top trim, changing it from Ultimate to Ultra. Finally, front-wheel drive has been axed as an option, with all 2025 XC40’s coming standard with all-wheel drive instead.

Warranties and After-Sales Support

• Limited Warranty – Four Years or 50,000 Miles
• Powertrain Warranty – Four Years or 50,000 Miles
• Complimentary Maintenance – Three Years or 36,000 Miles

Volvo’s included warranty coverage is not mind-blowing, but it is reasonable. The bumper-to-bumper coverage on offer is slightly above average for this segment, with the powertrain warranty being slightly below average. What is impressive, though, is the fact that the Swedish brand includes three years of scheduled maintenance visits as part of your purchase.

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A Refined, Minimalist Interior Packed With Premium Materials Awaits You

Volvo is a brand that embodies the phrase “money doesn’t shout, it whispers”. Where a lot of other luxury automakers aim to be as flashy as possible, sometimes coming across as kitsch, the XC40 lets its exceptional build quality, comfortable materials, and plentiful features speak for themselves. In our opinion, there are few right now who do luxury as well as Volvo.

Interior Dimensions and Comfort

For a subcompact crossover, the Volvo XC40 is impressively spacious. Those in the front seats are obviously treated the best, with a ton of legroom. However, those relegated to the back seats won’t find all that much to complain about, with more legroom than you would find in the Volvo’s rivals. Cargo capacity is also exceptional, with a ton of space behind the second row. Fold the rear seats down, and you can get a total of 65.7 cubic feet.

Volvo has a pretty cohesive design ideology across their entire lineup, one that they have spent a lot of time cultivating. While the minimalist approach is certainly evident, the XC40 does feature a hint of playfulness. The star of the show, though, is the high-end materials used throughout the cabin. When fully kitted, it comes with plenty of comfort features, including heated seats, a heated steering wheel, and dual-zone climate control with an air purification system.

Infotainment and Technology

Core in Volvo’s design identity right now is the portrait layout of the infotainment screens in their vehicles. The XC40 features a nine-inch touchscreen that sits dab in the middle of the dashboard, regardless of which model you opt for. While there are a few physical buttons, most of the cabin’s core functions can be accessed via this touchscreen. Voice controls are also available though. Every XC40 also comes with a 12.3-inch digital gauge display.

The XC40 features a number of USB ports, which can be used to connect your phone via Apple CarPlay or Android Auto. Volvo doesn’t currently offer wireless connectivity for these features, unfortunately. A standard eight-speaker sound system will satisfy most, but a 13-speaker Harman Kardon premium sound system is available on top trims.

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The XC40 Is Perky, Efficient, and Packed With Safety Features

Volvo is known around the world for building some of the safest cars on the road. In the modern age, they have innovated some of the industry’s most impressive safety features. This all helps to make the XC40 one of the sturdiest vehicles that you can buy today. Don’t think this makes it boring, though, with the subcompact SUV featuring a peppy powertrain.

Performance Specifications

Every XC40 comes with the same powertrain. A turbocharged four-cylinder engine sits under the hood, assisted by a 48-volt mild-hybrid system. As mentioned already, Volvo has gotten rid of front-wheel drive models for 2025, meaning that every new model comes standard with all-wheel drive. This setup means that the crossover is quicker off the line than you would expect.

Everything in the XC40 operated smoothly. From the slick-shifting eight-speed automatic to the finely tuned suspension. It may not be as athletic as some rivals, but it handles twists and turns in the road with plenty of confidence. Ride quality is superb, with the suspension eating up most of the bumps in the road without any complaints. One of the most impressive things about this little SUV is the fact that it comes with a tow rating of 3,500 pounds, an extreme rarity in this segment.

Fuel Economy

The XC40 may not be the most efficient vehicle in its class, but it doesn’t perform badly by any means. If outright efficiency is what you’re after, then you may be better served opting for the BMW X1 or the Mercedes-Benz GLA. Given the power that is on offer here, though, it feels like a pretty fair trade off.

Key Safety and Driver Assist Features

• City Safety Collision Avoidance
• Lane Keeping Aid
• Rear Collision Warning & Mitigation
• Blind Spot Information System
• Adaptive Cruise Control

Volvo is king when it comes to safety on the road, with a ton of standard features making their way into the XC40. Things like automated emergency braking and blind-spot assistance are standard features. The Volvo also has an interesting feature where it tightens the seatbelts and flashes its lights when it predicts a collision, preparing you and your passengers for impact. Semi-autonomous driving is also available in the XC40.

It has performed excellently in crash testing, with the NHTSA scoring the crossover five stars out of five for safety.