Recently picked up my 08 S40 T5 AWD. Compared to competition the value is great; higher rate of
depreciation means this is a good used car to pick up (if you're planning on keeping it for a while). You would have to pay much more for similar Legacy GT or Audi A4. Handling is better than most sedans, but not as tight as an A4 in the steering or suspension. Good enough for spirited driving. While climbing mtn passes turbo seems to make more than ample power on my way to Tahoe. Acceleration isn't great either at low or midrange. (Tranny on auto keeps revs low, so using the tiptronic helps) On snow and ice the Haldex type awd system performs almost invisibly. Overall a very good buy. 24mpg avg
Quiet at speed. Interior is gorgeous and seats are best I've ever owned. Storage space is sufficient. Trunk is a bit shallow but rear seats drop down. Sirius radio is great. Controls are logical well placed, and pretty. the lights are confusing; they're always on! Can't turn off daytime lights. Love the interior fabric.
Haldex part time awd system doesn't seem to be an issue for an avg driver; if I were looking for a racer this wouldn't be it; the slip angles would reduce cornering efficiency. But, the auto engagement of awd suits most normal use needs. I read somewhere system will even go to full diff lockout as needed; pretty impressive.
If I were to change anything it'd be wider tires or stiffer sway bars; car could corner a bit tighter.
I have stock 16" rims so that could be the problem. Acceleration isn't great which is why the newer models have 6 spd auto's. A sport mode would help to keep the revs up closer to the peak powerband.
More compartments to store stuff up front would be nice; but the 08's aren't bad. I heard pre-08's have very little storage options.