Volvo XC40 Lease Deals
Compare live Volvo XC40 lease deals below from an independent, whole of market broker. The XC40 is Volvo's compact SUV, now offered purely as a 48 volt mild hybrid petrol in B3 and B4 form. If you are looking for the fully electric version, it is now called the Volvo EX40, and the smaller electric option is the Volvo EX30.
Why Lease the Volvo XC40?
The Volvo XC40 is the car that took Volvo from a respected niche to a genuine premium alternative. It is a compact SUV that competes with the Audi Q3 and BMW X1, and it does so by being calmer and better resolved rather than sportier.
Its strengths are the ones that matter over a three or four year agreement. The cabin is beautifully judged, with clear controls and materials that still feel good years in. The seats are among the best in the class, which sounds like a small thing until you drive a long motorway journey in them. Visibility is excellent and it is an easy car to place on a narrow road.
Practicality was designed in rather than added later. There is useful underfloor boot storage, a bin space where the speaker used to sit in the door, and a boot floor that folds up to make a divider. None of it is showy, all of it gets used.
XC40 or EX40? The Names Have Changed
This trips a lot of people up, so it is worth being direct about it. The XC40 name now refers only to the petrol mild hybrid. There is no longer a plug-in hybrid version, and there is no electric XC40.
The fully electric car that used to be sold as the XC40 Recharge was renamed the Volvo EX40 in 2024, bringing it into line with the EX30 and EX90. It is the same car underneath, just badged to match the rest of Volvo's electric range.
So if you have been searching for an electric XC40 and finding petrol listings, the EX40 is what you are after. If you want the coupe styled version of the same thing, that is the Volvo EC40, formerly the C40 Recharge.
Volvo XC40 Engines and Running Costs
The range is simple. A 2.0 litre petrol engine with 48 volt mild hybrid assistance, in two states of tune, both automatic.
The B3 is the everyday choice at roughly 161bhp, reaching 62mph in 8.6 seconds and returning an official 42.1mpg with CO2 around 149g/km. The B4 raises output to roughly 194bhp and cuts the sprint to 7.6 seconds, with CO2 in the same broad area.
The mild hybrid system is not a hybrid in the sense of driving on electricity. It uses a small battery and starter generator to smooth the stop start system, assist under acceleration and recover a little energy when slowing. The benefit is refinement and a modest efficiency gain, not electric running. If you want to drive on electricity, that is the EX40.
Volvo XC40 Trim Levels
Core
The entry grade, and a perfectly sensible place to stop. Volvo's safety systems are standard across the range rather than being upsold, so Core is not a lesser car in the ways that matter most.
Plus
The volume choice, adding the comfort and convenience equipment most drivers expect at this level. Plus Black Edition applies darkened exterior detailing to the same specification.
Ultra
The full specification, with the upgraded audio and interior appointments that make the most of what is already a very well finished cabin. Also offered as Ultra Black Edition.
B3 in Plus trim. The B3 is quick enough for how this car is actually driven, and Plus covers the equipment you would otherwise miss. Spend the difference on the higher grade only if the audio system genuinely matters to you.
Leasing the Volvo XC40
The XC40 has been a strong leasing choice for years because it holds its value well, and residual values are what drive monthly rentals on a contract hire agreement. A car the funder expects to be worth more at the end costs you less over the term.
The honest drawback is that this is now the oldest part of Volvo's range and its powertrain choice has narrowed to a single petrol engine. If your priority is the lowest possible company car tax, a petrol mild hybrid will not deliver it, and you should be looking at the EX40 or EX30 instead.
For personal leasing that matters far less, and the XC40 remains one of the most satisfying compact SUVs to live with. On business contract hire the tax position depends on CO2, and rates are set each tax year, so have your accountant confirm the figures before you order.
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Volvo XC40 Leasing FAQs
It has been renamed. The fully electric car that used to be sold as the XC40 Recharge became the Volvo EX40 in 2024, so that Volvo's electric models all share the EX naming used by the EX30 and EX90. It is fundamentally the same car, just badged differently. The XC40 name now applies only to the petrol mild hybrid, so if you are searching for an electric XC40 and only finding petrol versions, the EX40 is the one you want.
It is a mild hybrid, which is not the same as a full or plug-in hybrid. A 48 volt system with a small battery assists the petrol engine under acceleration, smooths the stop start and recovers a little energy when you slow down. It cannot drive the car on electricity alone and there is nothing to plug in. If you want electric running you need the EX40, and the plug-in hybrid XC40 was discontinued in 2023.
Both use the same 2.0 litre mild hybrid petrol engine, tuned differently. The B3 produces roughly 161bhp and reaches 62mph in about 8.6 seconds. The B4 produces roughly 194bhp and does it in about 7.6 seconds. Fuel economy and CO2 are broadly similar, so the choice is really about whether you want the extra performance. For most drivers the B3 is entirely adequate.
It suits that job well. The seats are among the best in the class and make a real difference over distance, the cabin is quiet and the ride is settled rather than firm. The B3 returns an official 42.1mpg, which is reasonable for a petrol SUV of this size. The one caveat is that a petrol mild hybrid will not give you the running cost advantage an electric car would on a high mileage commute, so it is worth comparing against the EX40 if you cover big distances.
Better than the dimensions suggest, because Volvo thought about how the space is used rather than just how big it is. There is underfloor storage, and the boot floor folds up to act as a divider so shopping does not slide around. The door bins are unusually large because Volvo moved the speaker elsewhere to free up the space. It is a compact SUV, so it will not swallow what a Volvo XC60 will, but it is well organised.
Because the XC40 has historically held its value well, and residual value is the single biggest factor in what a contract hire agreement costs each month. When a funder expects a car to be worth more at the end of the term, that expectation is reflected in the rental. Leasing also means you hand the car back rather than dealing with the resale yourself, which is useful in a market where values on combustion cars are less predictable than they used to be.
LetsLease is a broker rather than the lender. The agreement sits with one of the major UK leasing funders, including Lex Autolease, Novuna, Ayvens and Santander, and that funder owns the vehicle and holds the credit agreement. Our role is finding the right deal across the market and managing the order through to delivery, with the same consultant handling it from start to finish. Because funders price the same car differently, access to several is what allows a broker to improve on going direct to one lender.