Peugeot 408 vs Volvo XC40
A detailed look at how two of Australia's most popular SUVs compare on price, running costs, safety, and everyday livability.
Specifications and pricing correct at time of publishing. Prices are RRP before on-road costs unless stated otherwise. Always confirm with the manufacturer or dealer before purchasing.
Price Breakdown
The Peugeot 408 starts from $57,990 before on-road costs, while the Volvo XC40 opens at $54,990. That makes the Volvo XC40 the more affordable entry point by $3,000.
Once you factor in stamp duty, registration, CTP insurance, and dealer delivery, expect to add roughly 8-12% on top of the RRP depending on your state. That puts estimated driveaway prices in the ballpark of $63,789 and $60,489 respectively.
Over 5 years, the running costs favour the Peugeot 408 by roughly $1,710 in fuel alone.
Safety Rundown
ANCAP safety ratings have not been published for both models yet. We will update this section when crash test results are available.
Feature Showdown
The Peugeot 408 features a 10-inch touchscreen paired with a 10-inch digital dash, while the Volvo XC40 gets a 9-inch display and 12.3-inch instruments. Apple CarPlay and Android Auto are standard across both.
The Peugeot 408 stands out with wireless Apple CarPlay/Android Auto, wireless charging, panoramic roof, power tailgate and Focal audio that you will not find on the Volvo XC40. The Volvo XC40 counters with Apple CarPlay. Which feature set matters more depends on your daily routine and priorities.
Drivetrain
The Peugeot 408 uses a Hybrid producing 100kW and 230Nm of torque, sent through a automatic to a FWD layout. It covers the 0-100km/h sprint in 9.4 seconds.
The Volvo XC40 responds with a Petrol making 145kW and 300Nm, paired to a automatic driving the front wheels.
The Volvo XC40 has the clear power advantage at 145kW vs 100kW. For most buyers, the way each car feels day-to-day matters more than outright acceleration.
Space & Comfort
The Peugeot 408 measures 4,690mm long on a 2,790mm wheelbase, 250mm longer than the Volvo XC40 at 4,440mm (2,702mm wheelbase). The longer wheelbase on the Peugeot 408 generally means more rear legroom.
Boot space is 508L in the Peugeot 408 and 452L in the Volvo XC40, giving the Peugeot 408 a 56L advantage.
For towing, the Volvo XC40 leads with a 1,800kg braked capacity vs 1,300kg. That 500kg difference matters if you regularly hitch up.
Turning Circle
Kerb-to-kerb diameter. Smaller turns easier in tight carparks and U-turns.
10.8m diameter
Good
Based on 10.8m turning circle:
- U-turn on standard street (7m+ wide)
- Standard parking bay
- Tight carparks
- Narrow laneways
Turning circle ratings
True Cost to Own
Based on 15,000km of annual driving, fuel costs roughly $1,739/year for the Peugeot 408 and $2,081/year for the Volvo XC40. That is a $342 annual difference in favour of the Peugeot 408.
Estimated annual total: $1,739 (Peugeot 408) vs $2,081 (Volvo XC40). The Peugeot 408 saves you roughly $342 per year in total ownership costs. Use our Fuel Cost Calculator to estimate based on your driving.
Warranty: 5 years / 200,000km (Peugeot 408) vs 5 years / 999,999km (Volvo XC40). Both match on warranty length.
Who Should Buy Which?
Buy the Peugeot 408 if: You need more boot space, want lower running costs, or prefer Peugeot's approach to design and ownership experience.
Buy the Volvo XC40 if: You want the lower entry price, prioritise performance, need stronger towing, or prefer Volvo's approach to design and ownership experience.
The Verdict
The Volvo XC40 takes 3 of 5 key spec categories and comes in at a lower price. The Peugeot 408 will save you roughly $342 a year in fuel. If boot space matters, the Peugeot 408 has a clear edge. The best pick depends on what you value most. Explore the full specs for each model below.
Common questions
Which is cheapest, Peugeot 408 and Volvo XC40?
The Volvo XC40 is the cheapest at $54,990 before on-road costs. That undercuts the Peugeot 408 by $3,000.
Which is the most fuel-efficient?
The Peugeot 408 uses the least fuel at 6.1L/100km on the combined cycle.
Which is safest?
They are evenly matched — Peugeot 408 all hold a 5-star ANCAP rating. Compare the active-safety features above to separate them.
Which has the most boot space?
The Peugeot 408 has the largest boot at 508L.
Which can tow the most?
The Volvo XC40 has the highest braked towing capacity at 1,800kg.
Which is the most powerful?
The Volvo XC40 makes the most power at 145kW.
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Disclaimer: All information in this comparison was believed to be correct at the time of publishing (20 April 2026). Prices are manufacturer recommended retail prices (RRP) and may vary by state, dealer, and options. Driveaway costs include estimated on-road costs for Victoria. Fuel economy figures are WLTP/ADR combined cycle. Specifications can change without notice. Always verify with the manufacturer before making a purchase decision. CarSorted does not accept payment for recommendations.
Auto-generated from CarSorted's specification data · 20 April 2026
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