This is my first "new" car purchase and I am completely happy with my choice. It was a toss up between The Volvo S40 and the Audi A4 and the Volvo won out because I ended up saving about $4,000 over the Audi. Some would say that you can't compare the two, but I feel that I got the better deal. I love my new car and wouldn't trade it for the Audi for any reason. The handling is responsive and pick up in the T5 model is great!
The quality and design of the interior is great. The exterior is sharp (especially when compared to the last S40 style).
Although the factory stereo system is good (not great, but good), I would have liked the option for satelite radio and iPod connectivity (which is available in other Volvo models, just not the S40). Other than that, I have no complaints.