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If you’re drawn to the Volvo brand, but want something affordable, then you should check out the 2023 Volvo XC40 subcompact luxury SUV. It’s the cheapest new Volvo car. Also, with its stylish exterior design, practical cabin, and many standard features, the XC40 is one of the best small luxury SUVs. 

2023 Volvo XC40 is the cheapest new Volvo car

Front angle view of black 2023 Volvo XC40, cheapest new Volvo car and one of the best small luxury SUVs
2023 Volvo XC40 | Volvo

With a starting price of $36,350 MSRP, the 2023 Volvo XC40 subcompact luxury SUV is the most affordable new Volvo car. The next cheapest new Volvo is the S60 luxury sedan ($41,300 MSRP), followed by the XC60 luxury SUV ($43,450 MSRP).

Here are the 10 cheapest new Volvo cars for 2023, along with their starting prices:

  1. 2023 Volvo XC40: $36,350 MSRP
  2. 2023 Volvo S60: $41,300 MSRP
  3. 2023 Volvo XC60: $43,450 MSRP
  4. 2023 Volvo V60 Cross Country: $48,800 MSRP
  5. 2023 Volvo S60 Recharge: $51,250 MSRP
  6. 2023 Volvo XC40 Recharge: $53,550 MSRP
  7. 2023 Volvo C40 Recharge: $55,300 MSRP
  8. 2023 Volvo XC90: $56,000 MSRP
  9. 2023 Volvo S90: $57,000 MSRP
  10. 2023 Volvo XC60 Recharge: $57,200 MSRP

2023 Volvo XC40 is one of the best small luxury SUVs

White seats in 2023 Volvo XC40, cheapest new Volvo car and one of the best small luxury SUVs
2023 Volvo XC40 | Volvo

Not only is the 2023 XC40 the cheapest new Volvo car, but it’s also one of the best small luxury SUVs. Automotive critics frequently rank the XC40 at or near the top of the subcompact luxury SUV segment. 

For example, Car and Driver lists the XC40 as the best subcompact crossover SUV — ahead of other models such as the BMW X1, BMW X2, Mercedes-Benz GLA-Class, and Mercedes-Benz GLB-Class. U.S. News ranks the XC40 highly as well, listing it as the second-best choice — following the X1. 

Highlights of the 2023 XC40

There are multiple factors that make the new 2023 XC40 such a great choice for a small luxury SUV. For one, it has a stylish exterior design with a youthful look. Inside the XC40, the cabin is spacious and features contemporary Swedish design elements, which gives it a luxurious look and feel.

The XC40 also offers good value with its many standard features. This includes an infotainment system with a 9.0-inch touchscreen, automatic climate control, an eight-way power-adjustable driver’s seat, Apple CarPlay and Android Auto smartphone integration, and an eight-speaker audio system. Also, the XC40 offers safety-enhancing driving assistance technologies, such as automatic emergency braking, lane-keeping assist, and a semi-autonomous driving mode.

On the performance front, the XC40 is powered by a turbocharged 2.0-liter four-cylinder engine with a mild hybrid system. Mated to an eight-speed automatic transmission, it generates 187 horsepower for the B4 trims and 247 horsepower for the B5 trims. Also, the XC40 B4 has a front-wheel drive system, while the B5 has a traction-enhancing all-wheel drive system. 

Another good thing about XC40 is its towing capabilities, which is a rarity for subcompact luxury SUVs. When properly equipped, it can tow up to 3,500 pounds.

If you’re looking for a budget-friendly Volvo, then take a look at the 2023 Volvo XC40, which is the cheapest new Volvo car. Also, with its many positive attributes, the XC40 is one of the best choices for a small luxury SUV.

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Staff Writer, Producer - SUVs

Mark Putzer

With seven years of experience writing in the automotive industry prior to joining MotorBiscuit in 2021, Mark’s work can be found on dealership websites across North America. A Bachelor of Science degree in zoology from the University of Wisconsin-Madison sent Mark into the wilderness for environmental studies. Here, he discovered a passion for driving off-road trucks and SUVs off the beaten path.

During his extensive international travels, Mark developed an affinity for foreign cars and international automotive markets. Inspired by the industry-wide push toward environmentally-friendly EVs and hybrids, Mark covers topics about recent advances in the automotive industry, in addition to everything from off-road concepts to emerging EV technology.