Volvo XC40 vs. Lexus NX: Two Luxury Compact SUVs

I’m on a mission to find the perfect luxury compact SUV, and I’ve narrowed it down to the 2025 Volvo XC40 and the 2025 Lexus NX. Both vehicles promise premium comfort, advanced tech, and that upscale vibe, but which one suits my lifestyle—and yours—best?

In this article, I’ll share my firsthand experience test-driving and analyzing these SUVs, breaking down their strengths and weaknesses to help you decide. From design to performance, safety to practicality, I’ll compare them head-to-head, offering an honest take on what it’s like to live with these cars.

Volvo XC40 Vs. Lexus NX Comparison

Feature	Volvo XC40	Lexus NX
Base Price	$41,945	$42,140
Engine Options	2.0L Turbo 4-cyl (247 hp)	2.5L 4-cyl (203 hp), 2.4L Turbo (275 hp), Hybrid (240 hp)
Fuel Economy (City/Hwy)	23/30 MPG	26/33 MPG (base), 36/33 MPG (hybrid)
Cargo Space (Rear Seats Up/Down)	16.0/57.5 cu-ft	22.7/46.9 cu-ft
Infotainment Screen	9.0-inch Google Automotive	14.0-inch touchscreen
Standard Safety Features	Pilot Assist, WHIPS, Cross Traffic Alert	Lexus Safety System+ 3.0, Knee Airbags
Warranty	4 years/50,000 miles	6 years/70,000 miles (powertrain)
All-Wheel Drive	Standard	Optional

My Experience With the Volvo XC40

I slid into the driver’s seat of the 2025 Volvo XC40, and immediately, it felt like a warm Scandinavian hug.

The cabin’s minimalist design, with clean lines and open-pore wood, gave off a vibe of understated elegance.

It’s boxy yet modern, with a high ride height that made me feel commanding on the road.

The 9-inch portrait-style touchscreen, powered by Google Automotive, was intuitive for the most part, though I found myself fumbling with some menus during my test drive.

The seats? Incredibly supportive, especially for my lower back, which appreciated the extendable thigh support on longer drives.

Driving the XC40 was a smooth affair. Its 2.0-liter turbocharged four-cylinder engine, pumping out 247 horsepower, felt peppy enough for city commutes and highway merges. The standard all-wheel drive gave me confidence on a rainy day, gripping the road without hesitation.

I tested the Pilot Assist feature—a semi-autonomous system combining adaptive cruise control and lane-keeping assist—and it made a tedious highway stretch feel less taxing, though it’s not hands-free. The XC40’s suspension leaned toward comfort, soaking up bumps, but it still cornered flatly, which surprised me for a compact SUV.

Practically speaking, the XC40 shines for families. The rear seats offered 36.1 inches of legroom, which was ample for my 6-foot friend riding along, and the boxy shape translated to decent headroom. The cargo area, while smaller than the Lexus at 16.0 cubic feet with seats up, felt more usable for tall items due to its higher cargo cover. Folding the seats revealed a generous 57.5 cubic feet. I loved the clever storage solutions—like carpet-lined door bins and a removable trash bin—perfect for keeping my kid’s snacks contained.

But it wasn’t all perfect. The infotainment system, while sleek, occasionally lagged, and I missed having physical buttons for quick climate adjustments. Fuel economy, at 23 MPG city and 30 MPG highway, wasn’t stellar compared to some rivals. Maintenance costs also gave me pause; after the three-year free maintenance period, repairs could get pricey without an extended warranty. Still, the XC40’s unique charm and safety-first ethos made it a strong contender.

My Experience With the Lexus NX

Switching to the 2025 Lexus NX, I was greeted by a cabin that felt like a futuristic lounge.

The 14-inch touchscreen dominated the dashboard, its swooping design and “Lexus horns” adding a touch of drama.

The seats, wrapped in Acorn NuLuxe, were plush but lacked the thigh support I loved in the XC40.

The lower driving position made it feel more like a sporty hatchback than an SUV, which I enjoyed for its car-like handling.

The NX’s base 2.5-liter engine (203 horsepower) felt adequate but uninspiring; I preferred the optional 2.4-liter turbo (275 horsepower) for its extra kick.

On the road, the NX prioritized refinement. Its suspension smoothed out city potholes, though it felt slightly firmer than the XC40 on rough roads.

The hybrid option, with 240 horsepower and 36 MPG in the city, was a standout for efficiency, making it a smart pick for urban drivers like me who hate frequent gas station stops.

The Lexus Safety System+ 3.0, with features like pre-collision braking and lane departure alerts, felt polished, though I noticed it was less intrusive than the XC40’s Pilot Assist.

Inside, the NX’s cabin was a mixed bag. The front seats were cozy, but the rear was tighter, with 36.1 inches of legroom matching the XC40 but less headroom (36.3 inches). The cargo space, at 22.7 cubic feet with seats up, beat the XC40 for width, but the lower load deck and 46.9 cubic feet with seats folded felt less versatile.

The NX’s tech, like wireless charging and a head-up display, added a premium touch, but I found some rear door panels surprisingly plasticky for a Lexus.

The NX’s reliability, backed by Toyota’s reputation, gave me peace of mind, and the six-year powertrain warranty outshone the XC40’s. However, the base model’s performance felt lackluster, and all-wheel drive being optional (unlike the XC40’s standard setup) was a drawback for snowy climates. The NX’s higher starting price ($42,140) also made me question its value compared to the XC40’s bang-for-buck appeal.

Pros Of the Volvo XC40

Spacious and Practical Interior: The XC40’s boxy design maximizes headroom and legroom, especially in the rear, with 36.1 inches of legroom and a higher cargo cover that accommodates taller items. Clever storage, like carpet-lined door bins and a trash bin, makes it a family-friendly choice.
Standard All-Wheel Drive: Unlike many competitors, the XC40 comes with all-wheel drive across all trims, offering better traction in adverse conditions, which I appreciated during a rainy test drive.
Comfortable Seats: The seats are a standout, with extendable thigh support and lumbar adjustments that made long drives a breeze, especially for my aching back.
Advanced Safety Features: Volvo’s Pilot Assist, Whiplash Protection System (WHIPS), and Cross Traffic Alert with braking intervention set a high safety bar. The pre-crash seatbelt tightening added an extra layer of confidence.
Distinctive Design: The Scandinavian aesthetic, with clean lines and optional two-tone paint, gives the XC40 a unique, modern look that stands out in a sea of similar SUVs.
Free Maintenance Period: Three years or 36,000 miles of free scheduled maintenance is a nice perk, reducing ownership costs early on.
Electric Option: The XC40 Recharge, a fully electric variant, offers over 200 miles of range, appealing to eco-conscious buyers like me who want a greener option without sacrificing style.

The XC40’s blend of practicality and safety made it feel like a car designed for real life. The spacious interior and thoughtful storage solutions were perfect for my weekend errands, and the standard all-wheel drive gave me confidence in unpredictable weather. The seats were a revelation for comfort, and the safety features, like Pilot Assist, made highway drives less stressful.

The electric Recharge model is a bonus for those looking to reduce their carbon footprint, though I stuck with the gas-powered version for this test. The free maintenance period is a financial win, but I’d recommend budgeting for an extended warranty to keep costs in check later.

Cons Of the Volvo XC40

Mediocre Fuel Economy: At 23 MPG city and 30 MPG highway, the XC40 lags behind competitors like the Lexus NX hybrid, which could hit my wallet harder over time.
Laggy Infotainment: The Google Automotive system looks sleek but can be slow to respond, and the lack of physical buttons for climate controls frustrated me during quick adjustments.
Higher Maintenance Costs: Post-warranty repairs can be expensive, and without an extended warranty, I’d worry about long-term ownership costs compared to the Lexus.
Smaller Cargo Space: With 16.0 cubic feet behind the rear seats, the XC40’s cargo area is less spacious than the NX’s, which could be a dealbreaker for frequent haulers.
Limited Engine Options: The single 2.0-liter turbo engine, while solid, lacks the variety of the NX’s lineup, which includes a hybrid and a more powerful turbo.
Cramped Rear Visibility: The high beltline and small rear windows reduce visibility, making parking trickier without relying on the camera and sensors.
No Knee Airbag for Front Passenger: Unlike the NX, the XC40 misses this safety feature, which could impact protection in frontal collisions.

The XC40’s fuel economy was a letdown, especially compared to the NX’s hybrid option, and I noticed the difference at the pump during my week-long test. The infotainment system’s occasional sluggishness and reliance on touch controls for basic functions felt like a step backward.

Maintenance costs are a concern after the free period ends, and the smaller cargo space limited my ability to carry bulkier items. The lack of engine variety and the missing knee airbag for the front passenger were minor but noticeable gaps compared to the NX’s offerings.

Pros Of the Lexus NX

Excellent Fuel Economy (Hybrid): The NX 350h’s 36 MPG city and 33 MPG highway are a boon for urban drivers, saving me trips to the gas station during my test.
Reliable Reputation: Backed by Toyota’s engineering, the NX feels like a safe bet for long-term ownership, with fewer worries about unexpected repairs.
Spacious Cargo Area: With 22.7 cubic feet behind the rear seats, the NX offers more room for groceries or gear, making it versatile for my weekend getaways.
Premium Interior Design: The 14-inch touchscreen and swooping dashboard create a luxurious, high-tech vibe that felt a notch above the XC40’s minimalism.
Longer Powertrain Warranty: Six years or 70,000 miles of coverage outlasts the XC40’s, giving me confidence in the NX’s durability.
Top Safety Pick Rating: The NX’s 2024 IIHS Top Safety Pick rating, thanks to strong crash test performance, reassured me about its protective capabilities.
Variety of Powertrains: From the base 2.5-liter to the 2.4-liter turbo and hybrid, the NX offers options to match different driving styles, which I appreciated for flexibility.

The NX’s hybrid efficiency was a game-changer, especially for my city-heavy driving, and the reliability reputation made me feel secure about its longevity. The cargo space easily handled my camping gear, and the high-tech interior, with its massive touchscreen, felt like stepping into the future. The longer warranty and strong safety ratings were big wins, and the powertrain variety let me tailor the NX to my needs—whether I wanted efficiency or extra power. It’s a polished package that screams luxury with a practical edge.

Cons Of the Lexus NX

Tight Rear Seating: The NX’s 36.3 inches of headroom and 33.1 inches of legroom in the rear felt cramped, especially for taller passengers like my friend.
Optional All-Wheel Drive: Unlike the XC40’s standard AWD, the NX charges extra, which was a bummer for someone like me in a snowy region.
Base Engine Lacks Punch: The 2.5-liter’s 203 horsepower felt sluggish compared to the XC40’s peppier 247 horsepower, making merges less thrilling.
Plasticky Rear Door Panels: The rear doors’ brittle plastic was a letdown in an otherwise premium cabin, clashing with the Lexus brand’s luxury image.
Shorter Free Maintenance: Only one year or 10,000 miles of free maintenance (vs. the XC40’s three years) means higher early ownership costs.
Higher Starting Price: At $42,140, the NX is pricier than the XC40’s $41,945, which made me question its value for the base model.
Less Versatile Cargo Space: Despite more room with seats up, the NX’s 46.9 cubic feet with seats folded trails the XC40’s, limiting big loads.

The NX’s rear seating felt like a squeeze, and the optional AWD was a frustration for my winter driving needs. The base engine’s lack of gusto didn’t match the XC40’s lively feel, and those cheap rear door panels stuck out like a sore thumb. The shorter maintenance period and higher price tag made me hesitate, and while the cargo space was decent, it wasn’t as flexible as the XC40’s for larger items. These quirks dulled the NX’s otherwise strong appeal.

Frequently Asked Questions (FAQ)

Which car is better, Volvo or Lexus?

It depends on your priorities. The Volvo XC40 excels in comfort, safety, and standard AWD, ideal for families or snowy climates. The Lexus NX shines for fuel efficiency (especially the hybrid) and reliability but costs more and has a tighter rear. I lean toward the XC40 for its practicality, but the NX is a strong pick for urban efficiency.

What is the difference between Lexus NX 350 and Volvo XC40?

The Lexus NX 350 has a 2.4-liter turbo engine (275 hp) or hybrid (240 hp), offering better fuel economy (up to 36 MPG city) and a larger cargo area (22.7 cu-ft). The XC40’s 2.0-liter turbo (247 hp) comes with standard AWD, more rear legroom, and a longer free maintenance period. The NX feels sportier; the XC40 prioritizes comfort.

Why is the Volvo XC40 so popular?

The XC40’s popularity stems from its stylish Scandinavian design, spacious interior, and robust safety features like Pilot Assist and WHIPS. Its standard AWD, practical storage, and free maintenance for three years appeal to families and urban buyers seeking a premium yet approachable SUV.

What is the best alternative to the Volvo XC40?

The Lexus NX is a top alternative, offering superior fuel economy, reliability, and a high-tech interior. Other options include the BMW X1 for sporty handling or the Mercedes-Benz GLA for a plush ride, but the NX’s hybrid efficiency and warranty make it a close rival.

Conclusion: For Volvo XC40 and Lexus NX

Choosing between the Volvo XC40 and Lexus NX comes down to what you value most. If you crave comfort, standard all-wheel drive, and a family-friendly interior with clever storage, the XC40 is your match. Its safety features and Scandinavian charm won me over, despite its so-so fuel economy and pricier maintenance down the line. If efficiency, reliability, and a high-tech cabin are your priorities, the NX—especially the hybrid—delivers, though its rear space and optional AWD might disappoint. Test drive both to see which vibe suits you. Your perfect SUV is waiting.