Purchased the S40 T5 at the beginning of August, 2004. Ten months and 13000 miles later, I still smile every time I see my S40 in the parking lot or garage. I had also considered the Acura TSX, Infiniti G35 and Honda Accord V6 coupe - and have no regrets over my decision. The low end torque provided by the turbo means fun starts any time I want them. The sport suspension provides crisp cornering and keeps the car headed where I want it to go. While a compact car, the back seat is still large enough to haul three teen agers around town comfortably.
The exterior styling - it's neat to have people come up to you and tell you "nice car!" Living in Texas, I like the ability to lower all of the windows before I get into the car - a defnite advantage in the hot summers.
Desparately needs the ability to connect an Ipod/MP3 player. The cool center console with the integrated stereo and HVAC controls may prove to be an Achilles heal in terms of stereo system upgradability.