New 2005 Volvo S40 and V50 to Arrive Next Month with Aggressive Prices

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Redesigned 2005 S40 is Priced $1,500 Under Outgoing 2004 S40

If you've never thought a Volvo was in reach maybe now's the time to reconsider. What has changed? For the first time in five years Volvo will be offering a car under the $30,000 threshold, and it's no bare bones economy car either.

For the first time in five years, Volvo will be offering a car under $30,000. (Photo: Trevor Hofmann, Canadian Auto Press)

The new 2005 S40, as stylish as its larger S60 sibling and even more distinctive in its interior treatment, will arrive on the scene in July for only $29,995, a price that mirrors the $29,995 needed to by a 2000 model year Volvo S40 when it first became available in 1999. This price undercuts the outgoing 2004 S40 by $1,500 while offering a more refined car with greater premium feel.

What's more, the 2005 V50 sport wagon will start at the old sedan's base price of $31,495, $1,000 less than the outgoing 2004 V40 wagon. It's definitely a buyers market and Volvo is only too aware that many rivals are vying for the same slice of consumer pie.

Both the S40 and V50 are greatly improved over the old S and V models, with better appointed interiors and better overall performance. (Photo: Trevor Hofmann, Canadian Auto Press)

New for 2005, base S40 2.4i sedan and V50 2.4i include a 5-speed manual transmission as standard equipment - the '04 model included a standard 5-speed automatic. The addition of the manual allowed Volvo to drop the price of the new cars while offering enthusiast drivers a transmission choice that better suits the car's performance-oriented capabilities, while benefiting fuel economy and emissions.

What are the differences between the old S and V compacts and the new one's arriving next month? Pretty well everything. The new cars deliver 68 percent greater torsional rigidity, benefiting premium car solidity, handling and crash worthiness.