Tested: 2026 Volvo XC40 Is Perfectly Adequate, But Is That Enough?

• What's new: We brought a 2026 Volvo XC40 to our test track to see how it holds up against newer small luxury SUV rivals like the Audi Q3 and BMW X1.
• Why it matters: The XC40 is Volvo's smallest and least expensive gas SUV, and we're starting to see a little gray in its whiskers.
• Edmunds says: The XC40 is adequate, but it has a hard time competing in a crowded class — especially at more than $50K as tested.

Even though it's considerably heavier than the Mercedes-Benz GLA 250, the XC40's extra power helps it close the gap to within a tenth of a second of the GLA in the sprint to 60 mph. Both are nearly a second slower than the BMW X1, which has a competitive horsepower figure but loads more torque than the other vehicles. The combination of a relatively low-output engine and a slow-to-respond transmission does the Acura ADX dirty on our acceleration straight.

The Volvo and Acura performed well in our 60-0 mph panic-braking test. Distances of 124 feet and 121 feet, respectively, are typical results for a subcompact luxury SUV. The GLA's result of 138 feet is far longer than we expected (it's actually 2 feet longer than a Ford-150 Hybrid, which weighs over a ton more). But the X1 — the only one of these vehicles shod in grippy summer performance tires — handily wins our slowdown showdown, with a stopping distance of 116 feet. Its sporty rubber also explains its superior showing at our skidpad.

So the Volvo XC40 posts decent numbers at our test track; it doesn't wow in any particular area, but it doesn't fall on its face either. The only problem? Like the Acura ADX, the XC40 doesn't really come in a sporty version. So if you're looking for a Scandinavian rival to the Mercedes-AMG GLA 35, GLA 45 or BMW X1 M35i, you're out of luck.

The definition of average

But nobody would seriously decide whether to buy the XC40 based on its merits at a racetrack. After all, vehicles in this segment shine if they can deliver on the promise of luxury and refinement made by the badge on the hood. With this criterion as my North Star, I can confidently say that the XC40's execution is totally average.

First, the positives. I'm 6-foot-4, so you can trust me when I say that the XC40 is spacious in both rows — more so than most vehicles in this class. The boxy shape affords large windows that give the driver a clear view out. I was also impressed by the XC40's cabin materials. All the soft-touch plastics, leathers and open-pore wood could have come from the larger, more expensive Volvo XC60. The carpet in the door felt a little cheap, but it's functional in that it keeps items from rolling around and making noise. There are clever touches here that make the XC40 feel like it wasn't designed to fit a price tag. Unfortunately, this ethos isn't applied to every aspect of the car.

My biggest nits to pick are powertrain-related. First, the engine has an almost diesel-like chatter that is omnipresent at idle and while accelerating. It feels agricultural and unrefined, and there's not enough sound deadening. You hear it all the time. 

The second issue is with the climate control system. In 2023, Volvo added a mild hybrid system to the powertrain; in doing so, they removed the ability to defeat the automatic engine stop-start system (since our initial test, Volvo has deployed an over-the-air update that allows drivers to disable the engine start-stop system). This isn't a problem if the electric motor is powerful enough to keep the air conditioning pumping cold air. The XC40's is not. 

During my weeklong tenure behind the wheel, Los Angeles was in the midst of a typical summer heatwave, but it was humid. You could taste the air. Anybody who knows the local climate would agree this is unusual — I have to imagine there's a Californians sketch where a character says, "Yeah, but it's a dry heat." As soon as the XC40 came to a stop, the engine kicked off and the in-cabin temps and air density started to rise. The seats don't breathe well either, so things get swampy quickly.

There are other issues, too. Despite running a new version of Volvo's operating system for 2026, the infotainment interface is still prone to bugs and glitches, and the menus are difficult to navigate. You can fire up Apple CarPlay and Android Auto by connecting via a USB-C cable, but it's odd for a luxury vehicle not to offer wireless connectivity for these apps. 

The XC40's value statement is also tough to work your head around. Entry-level models are reasonably priced, especially given the features you're getting. It's once you get into the upper trims that it all starts to fall apart. An XC40 equipped like our tester — but without the unnecessary fancy wheels — costs about $53,000. A similarly equipped Mercedes GLA is, admittedly, about $6K more. But a similarly specced X1 costs just under $50K, and a loaded Audi Q3 is about $51K. These are objectively newer and subjectively better cars.

At the end of the day, the 2026 Volvo XC40 has its charms, and if you're considering one of the wallet-friendly trims, it can be a good deal. But the expensive versions have too many flaws to overlook, and similarly priced rivals don't make the same mistakes.