German car companies have long been the dominant players in the compact sport sedan market. The Volvo S40, introduced to the North American market in 2000, was the Swedish brand's first stab at stealing some market share. Though it had its shortcomings, the S40 was a decent small sedan that helped redefine Volvo's image. Instead of the standard boxy shape once associated with Volvos, the S40 had a sleeker silhouette and was relatively fun to drive.

Volvo released the improved second-generation S40 midway through 2004. Styling is sportier and more refined, as are the car's ride and handling dynamics. Additionally, there are now two engine choices, including a 218-horsepower turbocharged five-cylinder. Though it still doesn't have the prestige or athleticism of its German competition, the latest Volvo S40 costs less and still offers plenty of refinement, comfort and style.

Current Volvo S40

The Volvo S40 compact sport sedan is available in three trim levels. The front-wheel-drive 2.4i trim comes with a 2.4-liter five-cylinder engine, while those looking for a sportier drive should take a look at the T5 R-Design or T5 R-Design AWD trim, which is powered by a turbocharged 227-hp 2.5-liter five-cylinder. A five-speed automatic is mandatory for all S40 models, and front-wheel drive is standard on all but the T5 R-Design AWD.

Standard features include alloy wheels, a telescoping steering wheel with auxiliary audio controls, a sunroof, Bluetooth and a six-CD changer with satellite radio. The T5 and T5 AWD models are decked out with sporty "R-Design" exterior and interior styling cues. Leather seating, premium Dolby ProLogic audio, a navigation system and a Sport package are just some of the optional luxury features that Volvo offers. Inside the S40, the seats, dash and panels look upscale and classy, and the ultra-slim center stack design makes a fashion statement while adding to the car's functionality. The driving position is snug and comfortable, but adults seated in the rear might find legroom tight.

In reviews, our editors have found the Volvo S40 to be an entertaining car to drive. The chassis and suspension give the car sharp handling attributes. The optional sport package comes with a revised suspension and bigger wheels and tires, which improves cornering performance at the expense of comfort. For most buyers, the standard suspension setup will provide plenty of thrills while offering more cushioning over potholes. As the base 2.4-liter engine's output is rather unimpressive, going with the T5 probably isn't a bad idea.

Used Volvo S40 Models

The present second-generation Volvo S40 was introduced midyear as a 2004.5 model. (A related wagon variant is called the V50.) Originally, this S40 had an optional six-speed manual transmission available for the T5; it was discontinued for the front-drive model for 2007 and the all-wheel-drive model for 2008. A manual transmission was available for the base 2.4i model through 2008, and the T5 -- originally rated at 218 hp -- received a slight boost to 227 hp that year. Stability control became standard on all S40s for 2007, and upgraded audio components and the new blind-spot monitoring system joined the roster for '08. The 2009 model received a slew of former options as standard equipment, with a corresponding price hike.

The first-generation Volvo S40 sport sedan debuted for 2000. It came with a turbocharged 1.9-liter four-cylinder engine that made 160 hp and 170 pound-feet of torque. A four-speed automatic transmission delivered power to the front wheels, and there was no manual transmission or AWD option. Standard features included ABS, automatic climate control, power windows and locks, and heated mirrors, while features like leather upholstery and a power driver seat were optional. In 2001, Volvo added safety features to the S40 and made minor styling changes to the headlights and interior. The company also brought out a new five-speed automatic transmission. For 2003, power was increased to 170 hp, and a CD player became standard. In 2004, Volvo added an LSE trim to the lineup to sustain interest in the car until the current generation launched later in the year.

In reviews of the first-generation Volvo S40, we noted that it was a competent small sedan but nonetheless a tough sell over the less expensive but comparably upscale turbocharged or V6-powered Volkswagen Jetta. If you're interested in buying a used S40 of this vintage, we'd recommend going with one from '03 or later, as these models benefited from the abovementioned mild power bump and standard CD player.