We bought our Volvo S40 T5 FWD new back in October 2004 have had very good luck with it. The 218 HP turbo engine is phenomenal. If you're seeking an adrenaline rush every time you hit the gas pedal, go for the T5 versus the ho-hum 2.4i. Handling is tight with almost no body lean. Highway ramps are a blast. Steering feedback is just right. However, even with TLC, the leather has not worn well at all. The seats are thinner and harder than those in the older S40 model. There is virtually no way to add an iPod adapter, and the ride is harsh. I agree with another owner's post that the heated seats do not get warm enough. In my particular S40's case, maintenance has not been an issue
Performance/handling, fuel economy (25 mpg overall), styling, capable all-weather handling (esp. in snow) automatic climate system works well, lots of programmable features, optional rain sensor is terrific. Finally, the seat can be raised high enough for a shorter driver like myself.
Lack of iPod adapter/satellite radio (or an easy way to add them), limited trunk space, low-grade leather, choppy ride -- even without the 17" wheels/Sport suspension package.