2021 volvo xc40
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2021 Volvo XC40

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23 city / 32 hwy

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2021 Volvo XC40
$392 / month
$487 / month
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A typical negotiated price before taxes & fees.
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Available Money Factor of 0.00035 for 36 month lease
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Buying Tips

What you must know before buying the Volvo XC40

John Diether
Automotive Editor - October 8, 2020
  • 2021 Volvo XC40 selection improving; 2020s remain on sale
  • $750 rebate on 2020s; $500 on 2021s
  • Lease a 2020 from $329 for 36 months
  • Get 0% APR for 60 months + up to $1,000 bonus

Popular and in stock:

The carryover 2021 XC40 continues flowing into dealers nationwide, and the 2020 XC40 remains in decent supply. Interest is still high, so no model stays in stock very long. Dealer discounting is minimal, but factory incentives are available.

The XC40 is available with two gasoline engines. An electric version is in the works, but there's no word yet on a release date.

Current factory offers vary by region and will expire November 2, 2020. Examples shown here are for California and other western states.

Up to $2,950 off:

Volvo continues to offer a $750 rebate on all 2020 XC40 trims. This could increase later in the year, but not by much. The XC40 has never needed the help of rebates to find buyers.

In addition, current Costco members will receives a $1,250 bonus.

The rebate on the 2021 XC40 stands at $500, and the Costco bonus is available.

On top of everything else, current Volvo customers are eligible for a $2,000 loyalty bonus toward any 2020 XC40 when buying, or $1,000 toward a lease. The loyalty bonus on the 2021 XC40 is $1,000/$500.

What's up with leases:

Once again, the 2020 XC40 T4 Momentum starts at $329 for 36 months (10,000 miles a year) with $3,829 due at signing. The effective monthly cost is $435, which is better than some earlier offers.

Even so, the XC40 still doesn't rank as a good lease value in our analysis. Perhaps later this fall there will be a deal we can recommend.

The latest lease offer on the 2021 XC40 Momentum is $335 a month with $3,835 due at signing. The effective monthly cost is just $7 higher, so upgrading to a 2021 model makes sense.

APR at 0%:

In place of the standard rebate, Volvo continues to offer 0% financing for 60 months on all versions of the 2020 XC40.

The same promotional rate is now available on the 2021 XC40, along with $1,000 bonus cash.

With either offer, you remain eligible for the loyalty bonus and Costco bonus.

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Advertised Lease Deals

T4 Momentum
$335Monthly Payment
Term Length (months): 36
Due at signing: $3,835
Mileage: 10k
MSRP: $34,695
Deal Valid in: Los Angeles
Expiration: 11/2/20

This ranks as an excellent deal based on our expert analysis of: vehicle price, length of lease term, amount due at signing, monthly payment, etc.

CarsDirect Target Price

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CarsDirectPricing as of 10/20/20 in 20149
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Cash Incentives

Incentive available to most customers and purchasing situations.
Bonus Cash Purchase Bonus Cash (Expires 11/2/20) Customer Rebate: Customers must take delivery of this vehicle prior to the expiration date to be eligible for this manufacturer rebate. This rebate may not be available on special factory orders or used in conjunction with special manufacturer financing or leasing programs. Other special financing programs may be available. Please check with your CarsDirect Trusted Dealer for complete details.%NotesManuf% %Eligibility% Lease purchases are excluded from this incentive $1,000
Loyalty Bonus Cash SR Loyalty Bonus - Purchase (Expires 11/2/20) For current owners of the same make. May not be compatible with certain other incentive types such as Conquest programs. Please check with your CarsDirect Trusted Dealer for complete details.%NotesManuf% %Eligibility% Individuals or members of the same household who currently owns/leases any model year Volvo or Saab vehicle OR has owned/leased either within the last 6 months. $1,000

Financing Incentives

Promotional APR Offer Promotional APR programs available for qualified buyers. Please check with your CarsDirect Trusted Dealer for complete details.%NotesManuf% %Eligibility% Residents residing in qualifying regions of the United States. O.A.C. %Qualification% Retired service loaners and demonstrators are eligible for this program.
Term(s)24 - 3637 - 60
Rate %0%0%
Eligibility Residents residing in qualifying regions of the United States. O.A.C.

Leasing Incentives

Lease Bonus Cash VCFS Lease Bonus Cash (Expires 11/2/20) Bonus cash available for qualified customers leasing a vehicle through the manufacturer's captive finance company on approved credit. Please check with your CarsDirect Trusted Dealer for complete details.%NotesManuf% %Eligibility% Must be leased through Volvo Car Financial Services. $500
Lease Loyalty Bonus Cash SR Loyalty Bonus - Lease (Expires 11/2/20) Lease loyalty bonus cash available for current lessees of the same make. Please check with your CarsDirect Trusted Dealer for complete details.%NotesManuf% %Eligibility% For current VCFS lease end retention customers, the loyalty allowance in only available with a Lease Payoff. %Qualification% Individuals or members of the same household who currently owns/leases any model year Volvo or Saab vehicle OR has owned/leased either within the last 6 months. $500

Hurry! Offer expires

Leases For Similar Cars

Based on 2021 Volvo XC40 T4 Momentum 4dr Front-wheel Drive - MSRP $34,695

2021 Volvo XC40 Overview

Joel Patel
Automotive Editor

What's New

The 2021 Volvo XC40 benefits from more standard features. On the safety front, the subcompact crossover SUV now comes with rear cross-traffic alert, blind-spot monitoring, rear parking sensors, and adaptive LED headlights as standard. Seeing as how a lot of these features are optional on competitors, it certainly gives the XC40 an edge.

That’s not all, leather upholstery, auto-dimming and power-folding side mirrors, and two rear USB ports have also been made standard. All-wheel-drive models additionally come with heated front seats.

Finally, Volvo added an all-electric XC40 Recharge model to the lineup. It's the brand's first fully-electric vehicle.

Choosing Your Volvo XC40

The XC40 is available in four trims: Momentum, R-Design, Inscription, and Recharge. Pricing starts at $34,695 including destination for the base Momentum and goes up to $40,445 for the Inscription. Pricing for the XC40 Recharge hasn't been announced as of this writing.

Engine Choices

There are three available powertrains for the XC40. All are based on a turbocharged 2.0-liter four-cylinder engine. The Momentum, R-Design, and Inscription all start with the T4, but the T5 is available for $2,000.

Engine TypeHorsepowerTorqueFuel Economy (Combined)
T4 2.0L Turbo 4-Cylinder187 hp221 lb-ft26 mpg
T5 2.0L Turbo 4-Cylinder248 hp258 lb-ft25 mpg
T8 2.0L Turbo 4-Cylinder and 2 Electric Motors402 hpNot Yet Rated79 MPGe

The base T4 powertrain is only available with front-wheel drive, while the more powerful T5 and T8 are only available with all-wheel drive. The only transmission available is an eight-speed automatic.

The T5 powertrain is the one to get. Going with the T5 powertrain also brings an available Polestar Performance Software package that costs $1,295. The package brings sharper throttle response, different software calibration for the transmission, and new engine mapping for improved performance.

The all-electric XC40 Recharge offers an EPA-estimated 208 miles of range with its 75-kWh battery.

Passenger and Cargo Capacity

Every XC40 can seat up to five people. While its body may be tiny, it still offers 36 inches of rear leg room, which is average for the class. With the rear seats in place, the XC40 can hold up to 20.7 cubic feet of cargo space. Folding them down opens cargo capacity up to 47.2 cubic feet. While that’s not class-leading, the XC40 offers a fold-up cargo floor, as well as hooks for bags.

Safety Features

Volvo’s known for being one of the safest automakers on the road, so it shouldn’t come as a surprise to see all of the safety features that are offered on the XC40. Forward collision warning, lane departure warning, automatic emergency braking, lane keeping assist, automatic high high beams, blind-spot monitoring, rear cross-traffic alert, and rear parking sensors are all standard.

Adaptive cruise control and a surround-view camera are available through the Advanced Package. Front parking sensors are available on the Momentum with the Premium Package ($2,200), but they come standard on the R-Design and up.

The IIHS named the 2020 XC40 a Top Safety Pick vehicle, while the NHTSA gave the 2021 model a five-star overall safety rating.


The XC40 comes with a 9-inch touchscreen and a 12.3-inch digital gauge cluster. Apple CarPlay, Android Auto, an eight-speaker audio system, three USB ports, satellite radio, and HD radio are also included.

Wireless charging is available through the Advanced Package, while navigation is offered as part of the Premium Package on the Momentum. The navigation system becomes standard at the R-Design level. A Harman Kardon audio system is a standalone option for $800.

Momentum - From $34,695

The entry-level Momentum trim comes with loads of standard features. Leather upholstery, an eight-way power driver’s seat with memory functionality, single-zone automatic climate control, adaptive LED headlights, 18-inch wheels, a power liftgate, and a leather-wrapped steering wheel are standard.

A variety of packages are available. The Climate Package adds heated front seats, a heated steering wheel, and heated windshield washer nozzles for $750. The Advanced Package ($1,500) brings adaptive cruise control, a surround-view camera, wireless charging, a headlight cleaning system, ambient interior lighting, and a 12-volt outlet in the cargo area. A panoramic moonroof costs $1,475.

R-Design - From $39,945

Navigation, a universal garage door opener, sport suspension, a panoramic sunroof, 19-inch wheels, front parking sensors, two-zone climate control, a power passenger seat, and Nubuck upholstery are standard on the sportier R-Design.

Volvo also offers the R-Design as part of a subscription program that’s called Care by Volvo. The plan is designed to simplify car ownership by offering a well-equipped vehicle with insurance, repairs, and maintenance all included in one neatly monthly payment. The subscription service for the XC40 costs $700 a month and includes 24 months and 15,000 miles a year.

Inscription - From $40,445

The XC40 Inscription uses the comfort suspension setup, and comes with leather upholstery, 18-inch wheels, and driftwood interior trim.

Recharge - Pricing To Be Announced

The Recharge is the new all-electric offering in the lineup. It comes with a 75-kWh battery, two electric motors, all-wheel drive, and 208 miles of range. Volvo has stated that the XC40 Recharge will start just under $50,000, and it's expected to go on sale in late 2020 or early 2021.

Compare XC40 Trims Side-By-Side

CarsDirect Tip

With more standard features, the 2021 Volvo XC40 Momentum is the best option in the lineup. Additionally, the more powerful T5 engine is worth the upgrade, as it brings a lot more power for a small drop in fuel economy.

The Car Connection Awards and Rankings


The Volvo XC40

Best Car to Buy Nominee

Editor's Favorite

The Car Connection Top Rankings

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