The S40 T5 is the top-of-the line version, equipped with a turbocharged 2.5-liter engine that produces an additional 50 horsepower over the base 2.4-liter, which placed 12th in this comparison. For the S40 T5 not only provides much better acceleration and comparable fuel economy, but a much better ride/handling compromise (the base version required the Sport Package to make it into this price range, the T5 did not). Those benefits, plus some additional features, seems like a nice tradeoff for the $1,800 price increase, one that could boost this car past the three cars between the two S40s reviewed here.

        The S40 here, which did not have the available Sport Package, rides stiffly, but more comfortably than a vehicle with that option. It is reasonably comfortable and stable on most pavement, but larger bumps punch through easily. The car is at least quite nimble, with well-controlled body roll and quick and communicative (though too light) steering, and aside from some negligible additional body roll, it was as capable as the 2.4i version equipped with the Sport Package. The turbocharged 2.5-liter five-cylinder is quite quick, and free of the turbo lag that plagues some competing models, and far better than the base 2.4-liter. It is not quiet, but has a more-pleasant sound than the base motor. Wind noise is well-suppressed, but road noise is still noticeable. The T5's turbocharged engine only brings a drop in 1 mpg from the base 2.4i.

       Inside, the S40 has firm, well-shaped, supportive, and very comfortable front seats, with surprising leg and headroom, even with the optional sunroof. The rear is less impressive, with very little legroom. The well-shaped seat and impressive foot space under the front seats allows for more comfort that the rear's dimensions and appearance suggest, however. The interior uses mostly high-quality materials, and all trim pieces fit together very well, though some plastics on the dash above the center stack feel flimsy. The instrument panel is tall and narrow, clumping a dozen buttons close together, though at least most are clearly labeled. The gauges are legible as well. Drivers sit very comfortably, but rearward visibility is partially obstructed by the large rear head restraints. Small footwells and rather small doors complicate entry/exit, especially to the rear. The S40's trunk is roomy and well-shaped, despite its petite exterior dimensions.

        The S40 did very well in crash testing, but did not stand out in the way that the Volvo name would suggest. It earned a Best Pick rating in its IIHS offset crash test, and an Acceptable rating in its IIHS side crash test. In NHTSA crash testing, the S40 earned four stars for the driver and five for the front passenger for frontal-impact protection, and five stars for both the driver and for the rear passenger in the side crash test.

      The S40 T5 reviewed here came extremely well- equipped, though for $1,800 more than the 2.4i reviewed here. Both have heated leather seats, a sunroof, a navigation system, side airbags protecting the head and torso, traction and stability control, a 6-disc CD changer, automatic climate control, and virtually all other options expected from the best in this group. The T5 adds a power passenger seat and a memory function to the 2.4i's equipment list as well.

        Overall, the S40 is a fun-to-drive car whose demerits of ride comfort, refinement, and interior space are worth overlooking when the excellent pricing is considered. The T5's added benefits of additional power and ride comfort without significantly detracting from fuel economy or handling is well worth the added cost. In short, the S40 is very good car overall with commendable pricing, it's hard to go wrong there.

Pros:

-Agility

-Fuel Economy

-Features for the Money

-Safety Ratings

Cons:

-Ride Comfort

-Rear Seat Space

-Refinement

Overall:

An inexpensive and fun premium compact.

Version Reviewed:

T5

Price of Version Reviewed:

$31,081

Powertrain:

2.4-liter I5