The new Volvo XC40 – a small SUV that sits below the XC60 and XC90 in the Swedish marque’s lineup - has been revealed in all its angular, two-tone glory. But the big news isn’t that it starts at £27,905.

Gallery: 2018 Volvo XC40: Live

The big news is that Volvo will offer the XC40 on a purchase plan called ‘Care by Volvo’, which is a new way of financing a car that does away with the buyer-specific variables; the haggling, the deposit, and all the fringe costs of insurance and maintenance. Instead, it offers a transparent, fixed-price monthly payment that includes a new car every 24 months, as well as roadside assistance and, well, everything but the fuel, basically. 

Care by Volvo will be offered on XC40 T5 and D4 Momentum models for £629 per month. 

2018 Volvo XC40

It’s car-buying for the mobile phone generation, and you can read more about how Care by Volvo is different to traditional PCP finance here:

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In the immediate future this finance method will only be offered on the XC40, so it’s no good if you like the payment plan but not the car, right?

2018 Volvo XC40
2018 Volvo XC40

What engines are on offer? 

Well, it looks likely that the XC40 will deliver. For starters it’s got the trademark, chic Swedish interior design, while the exterior has all the understated yet classy swagger of other recent Volvo design success stories.      

Underneath is a new platform that will underpin all of the next Volvo ‘40’ models, including the electric models. For now, the XC40 will come with a range of 2.0-litre, turbocharged four-cylinder petrol and diesel engines. The 145bhp T3 petrol is the entry-level option, followed by a 188bhp T4, and 244bhp T5. Diesel offerings are a 148bhp D3 or 188bhp D4.

All models except the T3 and D3 come with four-wheel drive and an automatic gearbox as standard, while those entry-level models will be front-wheel drive, with a manual gearbox (the D3 is has an optional automatic gearbox).

A pure electric, and a petrol-electric hybrid model will join the XC40 range in the next couple of years.

2018 Volvo XC40

Will I need to pay for loads of extras?  

Refreshingly, no. Entry-level Momentum get what’s described as ‘expressive styling’ with a textile and vinyl interior finish, the 9.0in touchscreen with sat-nav and three USB inputs, LED headlights, dual-zone climate control, 18in alloys and rear parking sensors. You can also add the contrast roof to any trim level.  

R Design brings leather seats and aluminium trim inside, gloss black highlights and twin exhausts on the outside, and lowered sports suspension underneath.

2018 Volvo XC40
2018 Volvo XC40

Inscription gets a powered tailgate, front parking sensors and the rather wonderful driftwood inlays that (we know from experience in other Volvos) makes the trademark avant-garde interior design go from being very nice to being a real mood-lifter.

Each trim also has a company car-oriented 'Pro' version, that includes heated, electrically adjustable seats amongst a few other extras.

Of course, you can add the semi-autonomous ‘Pilot Assist’ technology, and there’s enough safety kit as standard to make you feel fully bubble-wrapped.  

2018 Volvo XC40

How much will it cost, then?

Despite the news that Volvo’s going to offer an all-inclusive monthly payment option, there are no details yet on what those monthly costs might be. However, on overall list price, the Volvo is competitive with rivals like the Audi Q3, BMW X1 and Mercedes GLA, with mid-range models like the D4 AWD R Design likely to be among the most popular options, at £34,655.

Sales of the Volvo XC40 start early next year, so in the meantime have a look at the gallery below to figure out if you like the looks, and also to see some of the clever interior storage ideas that Volvo reckons sets the XC40 apart for practicality, like a removable bin in the centre console.

Here's the full price list for the range: 



D3 FWD R-Design manual


D3 FWD R-Design automatic


D3 AWD R-Design manual


D3 AWD R-Design automatic


D4 AWD R-Design automatic


T3 FWD R-Design Pro manual


T4 AWD R-Design Pro automatic


T5 AWD R-Design Pro automatic


D3 FWD R-Design Pro manual


D3 FWD R-Design Pro automatic


D3 AWD R-Design Pro manual


D3 AWD R-Design Pro automatic


D4 AWD R-Design Pro automatic


T3 FWD Inscription manual


T4 AWD Inscription automatic


T5 AWD Inscription automatic


D3 FWD Inscription manual


D3 FWD Inscription automatic


D3 AWD Inscription manual


D3 AWD Inscription automatic


D4 AWD Inscription automatic


T3 FWD Inscription Pro manual


T4 AWD Inscription Pro automatic


T5 AWD Inscription Pro automatic


D3 FWD Inscription Pro manual


D3 FWD Inscription Pro automatic


D3 AWD Inscription Pro manual


D3 AWD Inscription Pro automatic


D4 AWD Inscription Pro automatic


T5 AWD First Edition automatic


D4 AWD First Edition automatic


Gallery: 2018 Volvo XC40 reveal