The Volvo XC40 is a small SUV that packs a big punch thanks to its appealing exterior design and its refined driving dynamics. Subcompact luxury SUVs can often lack space and class compared with their larger siblings, but the XC40 is an exception. It has a long list of standard and optional features and a roomy, handsome, and quiet cabin.
For 2026, shoppers have a choice of turbocharged four-cylinders: The B4 engine makes 194 horsepower and pairs exclusively with front-wheel drive, while the B5 makes 247 ponies and comes with all-wheel drive. Fuel efficiency could be better, but we like how the XC40 handles and think it’s a good value for the money.
Expert Tip: Volvo makes an electric version of the XC40 called the EX40. It’s just as well-equipped and stylish, but it struggles to compete against its sportier rivals that provide more driving range.
