Whichever way you look at it, the case for the Volvo V40 is strong here. Opt for the entry-level D2 and you’ll pay lower benefit-in-kind company car tax than on any 1 Series or A3 Sportback

Our D3 Inscription test car occupies an equally strong position. Add its equipment tally to the equivalent A3 Sportback (Bluetooth, climate control, cruise control, keyless go, leather upholstery, 17-inch alloy wheels and active bi-xenon headlights) and the price will exceed £29k. The difference that makes to the 40 per cent income tax fleet user is worth just under £200 a year.

Matt Prior

Matt Prior

Road test editor
D3 SE Lux Nav models get leather, cruise control and active bi-xenons

Economy is competitive, albeit not outstanding in the case of the D3. Our test car averaged 45.9mpg over our test, and its touring economy result (51.7mpg) was acceptable. It’s good enough, just, to prevent you from questioning the wisdom of putting a five-cylinder engine in a car like this.

The D4 model, which has a slug more power, matches the D3's official figure of 65.7mpg and 114g/km, but choosing the Geartronic automatic version of either model causes those numbers to look far less favourable.

More fiscally sensible is the D2, which is the only diesel to pack a more conventional four-cylinder configuration. Its 1560cc unit returns an official figure of 78.5mpg on the combined cycle, and emissions of 94g/km.

Find an Autocar car review

Explore the Volvo range

  • Volvo V60 Cross Country

The turbocharged petrol engines both record 50mpg-plus on the combined cycle, and emissions of 125 and 129g/km are comparable with the D3 and D4 models.

Save money on your car insurance

Compare quotesCompare insurance quotes

Find an Autocar car review

Explore the Volvo range

  • Volvo V60 Cross Country