2006 Volvo S40 T5

With its 2.5-liters and 218 horses under the hood, the Volvo T5 will get you from A to B with a smile on your face. Even better, this zippy little sedan will keep you safe with those famous Volvo side beams and intelligently designed deformation zones.
Other impressive safety features come standard: driver and passenger air bags (including side-curtain units), antilock brakes, stability and traction control, and anti-submarining seats. The Swedes don't skimp on comfort features either, with air conditioning and power locks, seats, and windows all standard equipment.
User reviews run to both extremes, with one stating it was the very first time he's ever been 100% satisfied with a car and another deeming his completely unreliable. We found a moderate number of complaints concerning electrical glitches, which is nothing new for Volvo. (In fairness, with all of the features there is more that can go wrong.)
The mileage numbers are acceptable, especially with the manual transmission, and the turbo provides pep without penalty (until the booster needs maintenance). In general, buyers of this little sedan know it's small, but they'd nevertheless like a bit more room in the trunk and backseat.
Several users stated that they had either owned or test-driven a BMW and found the T5 equal in ride and handling and superior in interior design, comfort, and value. Other drivers compared it to an Audi, which would cost thousands more similarly equipped.