Faults:

Roof liner sagging, interior cloth on doors sagging - the glue in these models only lasts about 10 years before failing.

Lots of electrical problems - sensors suggesting a fault where there is not, power window failing one day but working the next, indicator will turn on right side if slightly touched, charging ports not working, sequential transmission won't manually switch (auto transmission mode works fine).

General Comments:

Mechanically the car has been great for the time I have owned it, and nearly every mechanical issue with it has been my fault. Unfortunately the electrics are playing up so will be selling it. You can pick them up for pretty cheap now ($5000 AUD) with about 150,000 km and they are reliable and have enough power to get around full of passengers and up hills, but not enough where you can give it a good go on the highway. A small car, so maybe not enough room if you are over 2m tall, but it looks like a fairly modern, luxury car.

The upgraded model of the S40 comes with a turbo, bigger engine, AWD (not front wheel drive) and usually leather seats for only about 20% more on average - worth it in my opinion.

Faults:

A CV joint liner needed replacing at about 140000km. Replaced for $127 Australian.

General Comments:

To date this car has been an excellent purchase.

The all leather interior and (fake) wood still looks great and the car goes like a rocket ship at the lights or on the open road.

I have been a little surprised about some of the negative Volvo comments I have seen on other websites as we've had very little to complain about.

Volvo dealerships in Western Australia have been very nice and helpful. To date we have had the car fully serviced at Volvo, but will probably now take the car to the local mechanic where I get my MGB serviced to save some money.

Faults:

At 80,000Km required an engine mount to be replaced (Au$300), due to wearing of rubber. Apparently this occurs every 40,000Km or so.

Sunroof had some squeaking, fixed with Snow White Jelly.

Car becomes noisy and air gets through doors seals at speeds greater than 140Km/h. Also windscreen wipers begin to lift.

Having problems with clutch and transmission on cold mormings (10'C or less).

Passenger side front window cost Au$600. Obscenely costly.

When starting car 'Brake light failing' warning light comes and remains on until you use the brake.

Noisy on roads.

General Comments:

It does handle well and the interior is excellent.

Very quick car.

Plenty of boot room and rear seats can fold to create more room.

Maintenance is very costly as written above.

Very economical on oil and fuel. 100km to 5L and I haven't had to top my oil up. Although I get the oil and filter changed every 20,000Km due to dusty roads I drive on.

The engine mount problem above drove me insane. It caused vibration through the entire car and took 4 trips to the mechanic to fix.