From £26,3859

Price, fuel economy and range, finance and depreciation

As a more premium offering in the compact SUV market, the XC40 understandably comes with a higher asking price than equivalently sized SUVs from volume brands.

An entry-level Momentum model with a T3 petrol engine and front-wheel drive will set you back from £27,905, while our flagship First Edition test car with a D4 diesel engine and all-wheel drive comes fully loaded at £39,905.

Getting within a whisker of the Range Rover Evoque for forecasted retained value is a result for Volvo

Even at the entry level, standard equipment is strong, with 18in alloy wheels, automatic LED headlights and Volvo’s 9.0in touchscreen infotainment system with DAB radio, satellite navigation and Bluetooth connectivity all present and correct. As with all Volvos, a suite of advanced safety systems is also included.

First Edition cars, meanwhile, benefit from larger, 19in alloy wheels, a premium Harman Kardon sound system and a range of packs otherwise found on the options list. Although these launch models command a notable premium, used price expert CAP expects residual values on them to be strong.

The typical transaction price on an XC40 once the initial launch interest has died down, meanwhile, should be around £35,000 so, sure, it’s fairly pricey but it is not in the Range Rover Evoque’s league.