German car companies have long been the dominant players in the compact sport sedan market. The Volvo S40, introduced to the North American market in 2000, was the Swedish brand’s first stab at stealing some market share. Though it had its shortcomings, the S40 was a decent small sedan that helped redefine Volvo’s image. Standard features include a telescoping steering wheel with auxiliary audio controls, stability control and a full complement of airbags.

Leather seating, premium Dolby ProLogic audio, a navigation system and a sport package are just some of the optional luxury features that Volvo offers. Inside the S40, the seats, dash and panels look upscale and classy, and the ultra-slim center stack design makes a fashion statement while adding to functionality. The driving position is snug and comfortable, but adults seated in the rear might find the legroom tight.

In reviews, our editors have found the Volvo S40 to be an entertaining car to drive. The chassis and suspension give the car sharp handling attributes. The optional sport package comes with a revised air suspension and bigger wheels and tires, which improves cornering performance at the expense of comfort.Instead of the standard boxy shape once associated with Volvos, the S40 had a sleeker silhouette and was relatively fun to drive. Volvo released the improved second-generation S40 midway through 2004.

Styling is sportier and more refined, as are the car’s ride and handling dynamics. Additionally, there are now two engine choices, including a 218-horsepower turbocharged five-cylinder. Though it still doesn’t have the prestige or athleticism of its German competition, the latest Volvo S40 costs less and still offers plenty of refinement, comfort and style.