Compare the2026 Subaru OutbackVS 2026 Volvo XC40

In a Vehicle-to-Vehicle Frontal Crash Prevention 2.0 test conducted by the Insurance Institute for Highway Safety (IIHS), the Subaru Outback achieved a “Good” rating - the highest possible - for its performance in forward collision warning and automatic braking systems, demonstrating its excellent capabilities in preventing collisions. The Volvo XC40 has not been tested.

To provide maximum traction and stability on all roads, All-Wheel Drive is standard on the Outback. But it costs extra on the XC40.

The Subaru Outback’s rear backup camera has a standard washer for maintaining a clear view under various conditions. In contrast, the Volvo XC40 does not offer a rear camera washer, meaning its effectiveness relies on manual cleaning by the user when necessary.

Both the Outback and the XC40 have standard driver and passenger frontal airbags, front side-impact airbags, driver knee airbags, side-impact head airbags, front and rear seatbelt pretensioners, height adjustable front shoulder belts, four-wheel antilock brakes, traction control, electronic stability systems to prevent skidding, crash mitigating brakes, daytime running lights, lane departure warning systems, blind spot warning systems, rearview cameras, rear cross-path warning, driver alert monitors and available around view monitors.

Side impacts caused 23% of all road fatalities in 2018, down from 29% in 2003, when the Insurance Institute for Highway Safety introduced its side barrier test. In order to continue improving vehicle safety, the IIHS has started using a more severe side impact test: 37 MPH (up from 31 MPH), with a 4189-pound barrier (up from 3300 pounds). The results of this newly developed test demonstrates that the Subaru Outback is safer than the XC40:

The Subaru Outback has achieved the Insurance Institute for Highway Safety’s (IIHS) highest rating of “Top Safety Pick Plus” for the 2026 model year. This distinction is based on its exceptional performance in IIHS’ rigorous battery of safety tests. Specifically, it earned a “Good” rating in the latest, more stringent moderate overlap front crash test, a “Good” result in the updated side impact test, a “Good” score in the revised pedestrian crash prevention test, and a “Good” score in the revised vehicle-to-vehicle crash prevention test. The XC40 is not even a standard “Top Safety Pick” for 2026.

Subaru’s powertrain warranty covers the Outback 1 year and 10,000 miles longer than Volvo covers the XC40. Any repair needed on the engine, transmission, axles, joints or driveshafts is fully covered for 5 years or 60,000 miles. Coverage on the XC40 ends after only 4 years or 50,000 miles.

There are over 2 times as many Subaru dealers as there are Volvo dealers, which makes it much easier should you ever need service under the Outback’s warranty.

A reliable vehicle saves its owner time, money and trouble. Nobody wants to be stranded or have to be without a vehicle while it’s being repaired. Consumer Reports rates the Outback’s reliability 28 points higher than the XC40.

J.D. Power and Associates’ 2025 Initial Quality Study of new car owners surveyed provide the statistics that show that Subaru vehicles are better in initial quality than Volvo vehicles. J.D. Power ranks Subaru above average in initial quality. With 71 more problems per 100 vehicles, Volvo is rated below average.

J.D. Power and Associates’ 2025 survey of the owners of three-year-old vehicles provides the long-term dependability statistics that show that Subaru vehicles are more reliable than Volvo With 30 fewer problems per 100 vehicles in the first three years of ownership, J.D. Power ranks Subaru higher than Volvo.

From surveys of all its subscribers, Consumer Reports’ March 2026 Auto Issue reports that Subaru vehicles are more reliable than Volvo vehicles. Consumer Reports ranks Subaru second in overall reliability. Volvo is ranked 15th.

The Outback XT/Wilderness’ standard 2.4 turbo 4-cylinder produces 13 more horsepower (260 vs. 247) and 19 lbs.-ft. more torque (277 vs. 258) than the XC40 B5’s standard 2.0 turbo 4-cylinder hybrid.

As tested in Car and Driver the Outback XT/Wilderness 2.4 turbo 4-cylinder is faster than the XC40 B5:

The flat cylinder configuration of the boxer engine in the Outback lowers its center of gravity, enhancing handling stability (That’s why Porsche uses boxer engines.). The XC40 doesn’t offer a boxer engine configuration.

On the EPA test cycle the Outback 2.5i 2.5 DOHC flat-4 gets better fuel mileage than the XC40 T5 (25 city/31 hwy vs. 23 city/30 hwy).

To lower fuel costs and make buying fuel easier, the Subaru Outback uses regular unleaded gasoline (premium recommended on Outback XT/Wilderness for maximum performance). The XC40 requires premium, which can cost on average about 84.9 cents more per gallon.

The Outback has 3.8 gallons more fuel capacity than the XC40 (18 vs. 14.2 gallons), for longer range between fill-ups.

In its Green Vehicle Guide, the U.S. Environmental Protection Agency (EPA) rates the Subaru Outback higher (5 to 6 out of 10) than the Volvo XC40 (4). This means the Outback produces up to 12.1 pounds less smog-producing pollutants than the XC40 every 15,000 miles.

The Outback has a standard continuously variable transmission (CVT). With no “steps” between gears, it can keep the engine at the most efficient speed for fuel economy, or keep it at its peak horsepower indefinitely for maximum acceleration. The XC40 doesn’t offer a CVT.

The Outback’s standard front and rear disc brakes are vented to help dissipate heat for shorter stops with less fading. The rear discs on the XC40 are solid, not vented.

The Outback stops much shorter than the XC40:

The Outback Wilderness has a standard full size spare tire so a flat doesn’t interrupt your trip. A full size spare isn’t available on the XC40; it requires you to depend on a temporary spare, which limits mileage and speed before replacement.

The Outback offers an available driver-adjustable suspension system. It allows the driver to choose between an extra-supple ride, reducing fatigue on long trips, or a sport setting, which allows maximum control for tricky roads. The XC40’s suspension doesn’t offer adjustable shock absorbers.

For a smoother ride and more stable handling, the Outback’s wheelbase is 1.7 inches longer than on the XC40 (108.1 inches vs. 106.4 inches).

The Outback Touring XT handles at .82 G’s, while the XC40 B5 Plus AWD pulls only .79 G’s of cornering force in a Motor Trend skidpad test.

The Outback Touring XT executes Motor Trend’s “Figure Eight” maneuver quicker than the XC40 B5 Plus AWD (27.2 seconds @ .66 average G’s vs. 28.1 seconds @ .61 average G’s).

For better maneuverability, the Outback’s turning circle is .9 feet tighter than the XC40’s (36.5 feet vs. 37.4 feet).

For greater off-road capability the Outback has a greater minimum ground clearance than the XC40 (8.7 vs. 8.1 inches), allowing the Outback to travel over rougher terrain without being stopped or damaged. The Outback Wilderness’ minimum ground clearance is 1.4 inches higher than on the XC40 (9.5 vs. 8.1 inches).

The front grille of the Outback uses electronically controlled shutters to close off airflow and reduce drag when less engine cooling is needed. This helps improve highway fuel economy. The XC40 doesn’t offer active grille shutters.

The Outback has 14.3 cubic feet more passenger volume than the XC40 (112.3 vs. 98).

The Outback has 2 inches more front headroom, 2.1 inches more front legroom, .3 inches more front hip room, 1.2 inches more front shoulder room, 1.4 inches more rear headroom, 3.4 inches more rear legroom, .5 inches more rear hip room and 1.1 inches more rear shoulder room than the XC40.

For enhanced passenger comfort on long trips the Outback’s rear seats recline. The XC40’s rear seats don’t recline.

The Outback has a much larger cargo volume with its rear seat up than the XC40 with its rear seat up (34.6 vs. 20.4 cubic feet). The Outback has a much larger cargo volume with its rear seat folded than the XC40 with its rear seat folded (80.5 vs. 57.5 cubic feet).

A low lift-over trunk design makes loading and unloading the Outback easier. The Outback’s trunk lift-over height is 28.3 inches, while the XC40’s liftover is 29.7 inches.

The Outback’s cargo area is larger than the XC40’s in every dimension:

Pulling a handle automatically lowers the Outback’s rear seats, to make changing between passengers and cargo easier. The XC40 doesn’t offer automatic folding seats.

A Trailer Stability Assist is standard on the Outback, using the Vehicle Dynamics Control sensors to detect trailer sway, then uses individual brakes to counteract any swaying and help keep the tow vehicle and trailer steady. A trailer sway program costs extra on the XC40.

The engine in the Outback is mounted longitudinally (North-South), instead of sideways, as in the XC40. This makes it easier to service and maintain, because the accessory belts are in front.

J.D. Power and Associates surveys of service recipients show that Subaru service is better than Volvo. J.D. Power ranks Subaru third in service department satisfaction. With a 36% lower rating, Volvo is ranked 23rd.

In case you lock your keys in your vehicle, or don’t have them with you, you can let yourself in using the Outback’s exterior PIN entry system. The XC40 doesn’t offer an exterior PIN entry system, and its Volvo On Call can’t unlock the doors if the vehicle doesn’t have cell phone reception or the driver can’t contact the service.

To shield the driver and front passenger’s vision over a larger portion of the windshield and side windows, the Outback has standard extendable sun visors. The XC40 doesn’t offer extendable visors.

Manual rear side window sunshades are available in the Outback to help block heat and glare for the rear passengers. The XC40 doesn’t offer rear side window sunshades.

Optional air-conditioned seats in the Outback keep the driver and front passenger comfortable and take the sting out of hot seats in Summer. The XC40 doesn’t offer air-conditioned seats.

According to iSeeCars.com the 2026 Subaru Outback retains 56.65% of its original value after 5 years, more than the 51.74% resale value of the 2026 Volvo XC40 after five years, which can save the Subaru’s owner up to $6616 in depreciation.

Consumer Reports® recommends the Subaru Outback, based on reliability, safety and performance. The Volvo XC40 isn't recommended.

The Subaru Outback outsold the Volvo EX40/XC40 by almost seven to one during 2025.