The V40 is an excellent performer. It's very comfortable and delivers a class-leading ride even on larger optional 18-inch alloys. All models have three-mode electric steering (Eco, Normal and Performance) that, even in the default Normal, offers good levels of feedback. The D2 is powerful enough and comfortable, while the D4 offers an excellent blend of comfort and pace. It's well balanced with strong brakes, neat handling and large reserves of low-down power. The turbo petrol models offer even more power, but they’re not as well matched to the new dual-clutch transmission as the diesel, so we’d pick the six-speed manual when going for the petrol version. The D4, though, offers the best blend of performance and economy.

The V40 offers class-leading ride comfort and excellent ergonomics. There's a high level of standard equipment that includes excellent and supportive seating, Bluetooth and steering wheel-mounted audio buttons. Dual-zone climate control is also standard. Rear passenger comfort has been worked on with great effect, too, with the sculpted outer seats moved towards the centre of the car. This delivers massive elbow room and also means the rear passengers can see the dash instead of the headrest in front of them.

The V40's diesel and petrol engines are well proven, also powering the C30, S40 and V50. All V40s will are built in Ghent, Belgium, and have excellent fit and finish throughout. Safety is a Volvo given, and even the entry-level model has a driver's side knee airbag and an intriguing new pedestrian airbag, with standard driver aids including blind-spot detection, City Safety technology as well as Dynamic Stability Control. The V40 is yet to be crash tested by Euro NCAP.

The V40 offers 335 litres of boot space, which expands to 432 litres with the seats folded and 1,032 if you measure up to the roofline. Every seat can be folded flat (and yes, oddly, that includes the driver's seat), while there's a low lip for easy entry and exit. There's also a clever (but sadly optional) two-tier boot floor that allows more space and security by allowing increased stowage underneath. In the cabin, there's the familiar Volvo ‘floating’ centre console, reasonably sized centre bin and map pockets, as well as clever rear armrest cupholders in the higher-spec models.

The V40 has a good level of standard equipment, yet it's pricier than its European rivals. From the entry-level ES, all V40s have the same high level of safety equipment, with the ES running 16-inch alloy wheels, body-coloured mirrors and bumpers, self-levelling headlamps and a roof-mounted rear spoiler. Inside, there are cloth seats, a leather-wrap steering wheel as well as USB and iPod connectivity, with infotainment operated via a five-inch display. Above this, the SE has keyless entry and start, steering-wheel operated cruise control and more elegant ‘T-Tec’ upholstery, while the flagship SE Lux has 17-inch alloy wheels and Xenon LEDs, active lighting and leather upholstery as standard. All models are available with a ‘Nav’ option, which sees a larger seven-inch screen and sat-nav with two manual map updates included.

The V40 D2 is a standout here, with 94g/km and 78.5mpg. It outperforms theAudi A3 1.8 diesel, as well as the BMW 116d Efficient Dynamics, while bettering even smaller-engined versions of its rivals. It delivers a company car BIK tax rate of £85/month, one of the lowest in its class. The D3 and D4 diesels have the same 65.7mpg and 114g/km figures, despite the D4's substantial power advantage. Petrol versions are impressive, too, with the T3 at 52.3mpg and 125g/km, the more powerful T4 not far behind with 51.4mpg and 129g/km. Volvo also offers a three-year/60,000 mile warranty with extended packages available even after the car's purchase.