2025 Volvo XC40 vs 2026 Toyota Highlander

$40,650 · Crossover

$45,270 · Crossover

Comparison Overview

Choosing between a compact luxury cruiser and a larger, mainstream SUV can be tough: do you prioritize premium feel or overall capacity? The 2025 Volvo XC40 starts at a lower $40,650, appealing to budget-conscious buyers who still want AWD and 247 horsepower. However, the 2026 Toyota Highlander, priced at $45,270, offers substantially more muscle with 265 hp and 310 lb-ft of torque, compared to the XC40's 258 lb-ft. Space is a major trade-off; the Highlander is significantly larger in every dimension, though surprisingly, the XC40 boasts a larger 20.4 cubic feet of cargo space versus the Highlander’s 16 cu ft listed here. Fuel economy is slightly better in the smaller Volvo at 26 combined MPG, while the larger Toyota uses regular unleaded gasoline, unlike the Volvo's recommended premium fuel.

Size Comparison

Performance

Fuel Efficiency

Full Specifications

Our Verdicts

🚗 Best for Commuters

2025 Volvo XC40

The XC40 offers better fuel economy at 26 combined MPG and has a smaller footprint for easier city navigation.

👨‍👩‍👧‍👦 Best for Families

2026 Toyota Highlander

Despite the listed cargo difference, the Highlander's superior length (194.9 inches vs 174.8 inches) suggests greater overall interior volume for passengers.

🏎️ Best for Enthusiasts

2026 Toyota Highlander

The Highlander delivers higher performance figures with 265 horsepower and notably more torque at 310 lb-ft.

💰 Best Value

2025 Volvo XC40

The XC40 saves buyers $4,620 upfront while still providing standard all-wheel drive and an 8-speed automatic transmission.

Choose the Volvo XC40 if...

You need to save money upfront, as the Volvo undercuts the Highlander by $4,620.
You prioritize efficiency slightly more, achieving 26 combined MPG versus the Highlander's 24 MPG.
You prefer a more compact exterior profile, measuring 174.8 inches long for easier parking.

Choose the Toyota Highlander if...

You require maximum power, as the Highlander provides 265 horsepower and 310 lb-ft of torque.
You prefer using regular unleaded fuel instead of the Volvo's recommended premium gasoline.
You need a larger overall vehicle, evidenced by its 76.0-inch width and 68.1-inch height.

Key Dimensions

Dimension	Volvo XC40	Toyota Highlander
Length	174.8"	194.9"
Width	73.7"	76.0"
Height	65.0"	68.1"
Wheelbase	106.4"	112.2"

Features Comparison

Safety

Feature	Volvo	Toyota
Blind Spot Monitor	✓	✓
Lane Departure Warning	✓	✓
Lane Keeping Assist System	✓	✓
Rear Cross Traffic Alert	✓	✓
Driver Attention Alert	✓	—
Pre-Collision Safety System	✓	✓
Post-Collision Safety System	✓	✓
Dual Front Side-Mounted Airbags	✓	✓
Front Head Airbags	✓	✓
Rear Head Airbags	✓	✓
Passenger Airbag Occupant Sensing Deactivation	✓	✓
Electronic Stability Control	✓	✓
Traction Control System	✓	✓
LATCH System	✓	✓
Rear Door Child Safety Locks	✓	✓
Anti-lock Brakes (ABS)	4-Wheel	4-Wheel
Front Solid Disc Brakes	✓	—
Rear Solid Disc Brakes	✓	✓
Brake Assist	✓	✓
Tire Pressure Monitoring System	✓	✓
Automatic Headlights	✓	✓
Headlight Delay-Off	✓	✓
LED Headlights	✓	✓
Daytime Running Lights	✓	✓
Front Headrests	2	2
Front Height Adjustable Headrests	✓	✓
Rear Headrests	3	2
Rear Folding Headrests	✓	—
Rear Center 3-Point Seatbelt	✓	—
Anti-Theft Alarm System (Remote)	✓	✓
Engine Immobilizer	✓	✓
Third Row Head Airbags	—	✓
Front Ventilated Disc Brakes	—	✓
Front Fog Lights	—	✓
Integrated Turn Signal Mirrors	—	✓
Rear Height Adjustable Headrests	—	✓

Engine

Feature	Volvo	Toyota
Base Engine Displacement	2.0 L	2.4 L
Number of Cylinders	inline 4	inline 4
Base Engine Type	mild hybrid	gas
Horsepower	247 hp @ 5400 rpm	265 hp @ 6000 rpm
Torque	258 lb-ft @ 1800 rpm	310 lb-ft @ 1700 rpm
Number of Valves	16	16
Camshaft Type	Double overhead cam (DOHC)	Double overhead cam (DOHC)
Variable Valve Timing	Variable	Variable
Fuel Injection Type	✓	✓

Drive Train

Feature	Volvo	Toyota
Transmission Type	8-speed shiftable automatic	8-speed shiftable automatic
Drivetrain Type	all wheel drive	all wheel drive
Hill Descent Control	✓	✓
Center Differential Type	—	Limited Slip

Fuel

Feature	Volvo	Toyota
Fuel Type	premium unleaded (recommended)	regular unleaded
EPA Fuel Economy (City/Highway)	23/30 MPG	21/28 MPG
EPA Fuel Economy (Combined)	26 MPG	24 MPG
EPA Driving Range (City/Highway)	326.6/426.0 mi.	375.9/501.2 mi.
Fuel Tank Capacity	14.2 gal.	17.9 gal.

Comfort & Convenience

Feature	Volvo	Toyota
Push Button Start	✓	✓
Tilt and Telescopic Steering Wheel	✓	✓
Audio Controls on Steering Wheel	✓	✓
Cruise Control on Steering Wheel	✓	✓
Electric Power Steering	✓	✓
Rear View Camera	✓	✓
Rear Parking Sensors	✓	—
Wireless Charging Pad	✓	✓
Cruise Control	✓	—
Front Cupholders	✓	✓
Rear Cupholders	✓	✓
Front Door Pockets	✓	✓
Rear Door Pockets	✓	✓
Front Seatback Storage	✓	✓
Leather Steering Wheel	✓	✓
Simulated Alloy Trim on Steering Wheel	✓	—
Dual Zone Climate Control	✓	—
Rear Ventilation Ducts	✓	—
Dual Vanity Mirrors	✓	✓
Auto-Dimming Rearview Mirror	✓	✓
Adaptive Cruise Control	—	✓
Universal Remote Transmitter	—	✓
3rd Row Cupholders	—	✓
Overhead Console with Storage	—	✓
Three Zone Climate Control	—	✓
Rear Ventilation Ducts with Fan Control	—	✓
Interior Air Filtration	—	✓
Turn Signal Indicators in Mirrors	—	✓

In Car Entertainment

Feature	Volvo	Toyota
Infotainment Display	9.0 in	8.0 in
AM/FM Stereo	✓	✓
Stereo Power	250W	—
Speaker System	8	6
Android Auto (Wired)	✓	—
Apple CarPlay (Wired)	✓	—
USB Port	✓	✓
USB Port with External Media Control	✓	✓
Satellite Radio	✓	✓
Satellite Radio Trial Period	3 months	3 months
Android Auto (Wireless)	—	✓
Apple CarPlay (Wireless)	—	✓

Power Feature

Feature	Volvo	Toyota
One-Touch Power Windows	4	4
Keyless Entry	✓	✓
Reverse Tilt Dual Mirrors	✓	—
Heated Mirrors	✓	✓
Moonroof Type	—	1st Row Power Glass

Frontseats

Feature	Volvo	Toyota
Front Head Room	39.0 in.	39.6 in.
Front Leg Room	40.9 in.	42.0 in.
Front Shoulder Room	56.7 in.	59.0 in.
Front Hip Room	54.7 in.	57.2 in.
Seat Material: Cloth	✓	—
Front Seat Type: Bucket	✓	✓
Driver Seat Power Adjustments	8-way	8-way
Driver Seat Height Adjustment	✓	✓
Driver Seat Lumbar Support	Power	Power
Driver Seat Memory Settings	2	—
Passenger Seat Manual Adjustments	8-way	—
Passenger Seat Height Adjustment	✓	✓
Passenger Seat Lumbar Support	Power	—
Driver Seat Heating	Multi-level	Multi-level
Passenger Seat Heating	Multi-level	Multi-level
Seat Material: Leatherette	—	✓
Passenger Seat Power Adjustments	—	8-way

Rearseats

Feature	Volvo	Toyota
Rear Head Room	39.1 in.	39.4 in.
Rear Leg Room	36.1 in.	38.7 in.
Rear Shoulder Room	56.3 in.	58.4 in.
Rear Hip Room	54.6 in.	57.0 in.
Split-Folding Rear Seatback	✓	—
Folding Rear Seat Feature	✓	—
Pass-Thru Center Armrest	✓	—
Folding Rear Seatback	—	✓
Reclining Rear Seats	—	✓
Manual Folding Third Row Seat	—	✓

Tires and Wheels

Feature	Volvo	Toyota
Wheel Finish	Painted Alloy	—
Wheel Diameter	18 in	18 in
Tire Type	All Season	All Season
Tire Size	235/55R18	P235/65R V
Spare Tire Type	Temporary	Temporary
Spare Tire Location	Inside Mounted	Underbody Mounted
Wheel Material	—	Alloy

Suspension

Feature	Volvo	Toyota
Four-Wheel Independent Suspension	✓	✓
Front Stabilizer Bar	✓	✓
Rear Stabilizer Bar	✓	✓

Warranty

Feature	Volvo	Toyota
Basic Warranty	4 yr./ 50000 mi.	3 yr./ 36000 mi.
Drivetrain Warranty	4 yr./ 50000 mi.	5 yr./ 60000 mi.
Corrosion/Rust Warranty	12 yr./ unlimited mi.	5 yr./ unlimited mi.
Roadside Assistance	4 yr./ unlimited mi.	2 yr./ unlimited mi.
Complimentary Scheduled Maintenance	3 yr./ 30000 mi.	2 yr./ 25000 mi.

Frequently Asked Questions

Common questions about comparing the 2025 Volvo XC40 and 2026 Toyota Highlander.

Which vehicle will cost me less to run daily regarding fuel?

The 2025 Volvo XC40 is slightly more efficient, achieving 26 combined MPG compared to the 2026 Highlander's 24 combined MPG. However, the Volvo recommends premium unleaded fuel, which often negates that mileage advantage unless you drive very few miles.

Why does the smaller Volvo have more listed cargo room than the larger Toyota?

Based on the provided figures, the XC40 offers 20.4 cubic feet of cargo space, while the Highlander offers 16 cubic feet. This suggests the Highlander prioritizes passenger space and overall length (194.9 inches) over the dedicated rear cargo hold compared to the compact XC40.

Is the price difference of $4,620 between the two models justified by performance?

Not entirely; the Highlander adds 18 horsepower and 52 lb-ft of torque for that premium, but you are also getting a much larger vehicle. If pure performance is key, the Highlander earns the extra cost, but for daily driving, the XC40's 247 hp is very capable.

Which car is generally easier to park and maneuver in tight city streets?

The 2025 Volvo XC40 is the clear winner here, measuring 174.8 inches long and 73.7 inches wide, making it significantly shorter and narrower than the 2026 Highlander.

If I plan on towing, does one use cheaper fuel?

The 2026 Toyota Highlander uses regular unleaded fuel, which typically costs less per gallon than the premium fuel recommended for the 2025 Volvo XC40, helping offset overall running costs.