BMW 118i vs Volvo V40

What's the difference?

The 118i has restored my faith in entry-level models from premium brands. Could it do with more standard gear? Absolutely, especially at $50K, and given what you could get in a higher-grade variant from a mainstream manufacturer, like the Mazda3 or VW Golf.

But the 118i is a cut above the mainstream hatchbacks in terms of performance, driver engagement and how the car makes you feel. 

If value is the priority, look elsewhere. But if your budget stretches this far and you can live without some of the luxo features, there’s little to complain about with the 118i hatch.

I’m going to miss this V40 like I do my old phone, and for many people this hatch really could really be close to perfect: excellent safety equipment, enjoyable to drive, cool prestige styling and some lo-fi buttons and dials that are far easier to use than swiping a screen. This is your last chance to own an old, new V40.

Since the first-generation model arrived on the scene in the early 2000s, the 1 Series has had a slightly awkward design, partly due to the rear-wheel drive underpinnings. But this latest third-gen model, that debuted in 2019, is by far the most sleek and stylish yet. 

This is helped by the slimline tail-lights, rising shoulder line and well-executed front-end design with the signature BMW quad headlights and wide 'kidney' grille. 

In Australia the 118i comes as standard with 'M suspension' that lowers the ride height by 10mm, which gives it even more of a hunkered down look. The 'Black Sapphire' paintwork of the test car also upped the sexiness of the little hatch.

The 1 Series, and its competitors from Benz and Audi, are all visually appealing in different ways, ensuring they will each appeal to different buyers. 

The interior design is unmistakably BMW, which hasn’t evolved significantly for about 15 years. Although new-generation models like the iX and the soon-to-launch X1 SUV prove that BMW can evolve.

BMW’s overall dash design and layout isn’t a million miles away from the edgy angular look of the new Audi A3 - and that’s no criticism.

The mixed synthetic leather and cloth trim on the seats has a cool blue cloth motif to break up the grey and add a small splash of colour to the cabin. Matching blue stitching on the dash and doors is a nice touch.

The V40 has been around forever (well, since 2012) but somehow it still looks great – it’s the Nicole Kidman/Rob Lowe of cars.

The thing is Volvo’s new-generation vehicles now have a different look, which will be worn by the next V40, and that seriously dates the current car.

Sure, in 2016 this V40 was updated and given 'Thor’s Hammer' LED running lights like the new-gen cars, but it’s clear the V40 has the old look.

The question is: are you the type of person who would be annoyed if this time next year somebody in the latest ‘new-look’ V40 pulled up beside you at the lights. If yes, then stop reading now… we’ll just wait a moment for you to leave.

Okay, it’s just us now. We don’t need those shallow people anyway, right? They don’t know what they’re missing out on – like an interior with lots of buttons. I’m serious the centre console actually has a numerical key pad for making phone calls. There are also lots of dials for the climate control and seat warmers and for the auto parking system.

All of these buttons will be replaced by a sexy, large touchscreen in the new V40, which will make the screen in the current one look like the slot in Ned Kelly’s helmet. Wait, don’t leave. See, I’ve road tested the new X60 and I missed just flinging a dial to make the cabin’s temperature cooler, instead I had to go into the screen’s menu, find the climate functions, and then slide my finger down a little digital ladder until I found 21 degrees. It’s a frustrating design and potentially distracting in that it takes your eyes off the road longer than twisting a dial does.

I’ll stop the rant. So, yes, the interior of the new V40 will look so sleek and minimalist, decluttered of its buttons and sporting a large vertical screen, but there are functional advantages to keeping it simple.

That said the current V40’s cabin is still special and elegant. The Inscription grade brings milled aluminium trim to the centre console and that leather steering wheel. Volvo owners would be aware of that solid, well-built feeling with a high-quality fit and finish.

What are the V40’s dimensions? Compared to the Audi A3 Sportback the V40 is 59mm longer at 4369mm end-to-end, 72mm wider at 1857mm across, and 5mm shorter in height at 1420mm.

Up front the 118i’s sports seats offer unbelievable levels of lateral support, and despite the bolsters being adjustable, it might be a little too snug for some. It’s expected for a pricey hot hatch but not the lower grade 1 Series. And given how much side support there is, it could do with a touch more under-thigh padding. The driver’s seat is power adjustable while the front passenger has to adjust their seat manually.

The typically chunky BMW M leather steering wheel looks and feels expensive and offers good grip. The minimal steering wheel controls are well labelled with text or clear icons. I appreciated the analogue air conditioning controls instead of them being buried in a multimedia screen menu.

The multimedia system menu is unfussy and while it’s not as tech heavy as some other systems, I don’t see that as a negative. It just means there are fewer functions you’re forced to remember. You can control the system via the 'iDrive' controller in the centre console or it can be used as a touchscreen. I like the way users are given both options. The 10.25-inch screen is nice and wide but quite narrow. Overall, BMW’s operating system is easy to use and functions well.

In terms of devices, the 118i has a wireless charging pad, as well as a USB-A and USB-C port, and a 12-volt charger up front.

It has a smallish central bin, but it’s fine for a number of smaller items. Tall bottles fit easily in the door storage bin and there’s a secondary slot for other items. The 118i comes with a decent sized glovebox, and two front cupholders with a nook for phones just behind it.

The 118i is more spacious than anticipated, especially in the second row. The back of the front seats are scalloped, allowing for a little extra knee room, but there is a good amount of legroom generally, and plenty of headroom, despite the lower roofline. 

The rear seats are on the flat side but still comfortable, and there are ISOFIX points on the two outboard seats.

Rear seat occupants have access to map pockets, two more USB-C ports, and storage for big bottles in the doors (just), but there are no rear air vents. The seats fold 60/40 and there’s no central armrest.

Open the hatch and you’ll find a reasonably sized boot that can swallow 380 litres, expanding to 1200L with the rear seats stowed. There is plenty of under-floor storage because there’s no spare tyre on account of the run-flats favoured by BMW. There are, however, a couple of tie-down anchors and shopping bag hooks.

Umm, next question. Okay, the V40 is not very practical. Those small rear doors don’t open wide, making entry and exit potentially difficult for older or less limber folks.

Legroom in the back is limited – although at 191cm I can just sit behind my driving position and headroom is getting tight, too – but still there’s just enough room for me.

The V40’s cargo capacity is 335 litres and that’s smaller than the A3 Sportback’s boot space (380 litres) and the BMW 1 Series’s luggage capacity (360 litres). The aperture of the boot itself is also small.

There’s even a practicality issue with the driver’s doorway – that windscreen is so slanted that the A-pillars either side of it are hard to dodge for taller people when trying to get in, but especially when climbing out.

The Volvo V40 in the mid-range Inscription grade with the T4 engine lists for $43,990. When I road tested it for the first time five years ago (in 2013) it was $45,990, and it’s a better car now than it was then, with more standard features.

The list includes a 7.0-inch touchscreen with reversing camera, sat nav, eight-speaker sound system with CD/DVD player, digital radio, and internet connectivity – but no Apple CarPlay or Android Auto. 

Also standard are front and rear parking sensors, an auto parking system, plus power adjustable driver and front passenger seats. There’s also leather upholstery, leather-trimmed steering wheel, dual-zone climate control, 17-inch 'Sarpas' alloy wheels and proximity key entry.

The safety equipment list is impressive, too – you can read all about what’s looking after you in the safety section below.

If you wanted a model comparison, then also look at the BMW 1 Series 18i M-Sport for $43,890 or the Audi A3 Sportback 2.0TFSI for $46,400 or Mercedes-Benz A200 for $44,300.

Also, don’t forget that because the current V40 is due to be replaced, dealers will be keen to move their stock to make way for the new one and that means you should be able to get yourself a bargain.

The 118i is powered by a three-cylinder turbocharged petrol engine, offering up 103kW of power and 220Nm of torque. It’s the same unit found in the Mini Cooper, albeit uprated by 3kW for the BMW.

It is front-wheel drive and the engine is paired with a seven-speed dual-clutch automatic transmission.

BMW says the 118i can cover the 0-100km/h sprint in 8.5 seconds.

If you’re after a quicker 1 Series, then the 180kW i28ti or 225kW Mi35i xDrive could be a better pick.

The V40 line-up has three petrol engines to pick from and the T4 sits right in the middle between the most powerful T5 and the least grunty T3. A 2.0-litre four-cylinder turbo-petrol engine the T4 makes 140kW/300Nm and delivers it through a smooth six-speed automatic.

That engine is up there with my favourite things about the V40 Inscription. The power figure isn’t huge but 300Nm of torque provides decent shove. A 0-100km/h time of 6.9 seconds isn’t at all slow.

According to BMW, the 118i consumes 5.9 litres of fuel per 100 kilometres. During my week of mixed driving with the hatch, I recorded a much higher average figure of 10.8L/100km. This was exacerbated by the fact I did my main test drive shortly before returning the car. It was much more efficient around town.

It has a 50-litre fuel tank and does require premium 95 RON petrol. In terms of CO2, the 118i emits 135g/km.

Volvo says the V40 should use 5.6L/100km of premium unleaded fuel over a combination of open and urban roads.

If you’re only going to stick to urban areas you’ll see higher usage – our trip computer was reporting an average of 14.9L/100km on a regular peak hour commute, but motorways drop the figure to about 8.0L/100km.

To be honest I wasn’t particularly hopeful of an engaging driving experience with the 118i given I have been underwhelmed by the base Mercedes-Benz A-Class. But after a week with the 1 Series, I reckon it might well be the pick of the premium players in this segment.

The 118i is also a much more enjoyable car to drive than the entry-level version of the outgoing X1 SUV with which it shares a powertrain. If you don’t need the extra cargo space or the ride height of the X1, then please test drive the 118i just to see what you’d be missing if you opted for the X1.

BMW has always excelled when it comes to building punchy powertrains for driver’s cars, and that continues to be true, even for its smallest internal combustion unit.

The 103kW/220Nm turbocharged three-pot is smooth yet responsive, offering linear power and torque delivery and acceleration that will bring a smile to your face.

Obviously it’s not as quick as its sportier 1 Series siblings, but make no mistake, you can still have fun in a 118i.

There’s a little bit of lag when taking off and some hesitation from the seven-speed dual-clutch transmission during shifts, but neither are deal-breakers.

That obsession with driver engagement has paid off with the steering which is quick and direct.

The suspension is geared towards dynamism and as a result of that, and the sharp steering, you’ll be seeking out the nearest twisty section of road every time you get behind the wheel. It’s planted in corners with excellent road-holding characteristics.

Unfortunately that dynamic tune, and the low-profile tyres, means the ride is on the firmer side and a little jiggly around town, but it settles at speed. 

In terms of visibility, the 118i has huge B- and C-pillars, small rear side windows and a narrow rear windscreen, so you’ll be relying on the parking sensors and camera. The 11.4m turning circle feels large for a small car, too. 

The cabin is well insulated from some outside noise but coarse chip roads will make their presence felt.

That grunty 2.0-litre engine teamed with that smooth six-speed transmission goes a long way to making the V40 Inscription T4 an enjoyable car to drive.

Good handling and a fairly comfortable ride complete a prestige and easy-to-drive package that’s only really let down by heavy steering and slightly noisy suspension. That heavily sloped windscreen does present some visibility issues, but it’s not a deal breaker.

First tested in 2012, the V40 the achieved one of the highest-ever scores awarded by EuroNCAP and saw ANCAP give it the maximum five-star rating in Australia. Back then the V40 came standard with advanced safety equipment only making it onto cars these days such as AEB, it also had the world’s first pedestrian airbag, which inflates to protect people from hitting the A-pillars and windscreen.

The 2017 update added blind-spot warning as standard on the Inscription grade. A $1300 option package brings Lane Departure Warning, Lane Keeping Aid, Active High Beam Control, Forward Collision Warning and Road Sign Information. A $3000 package brings adaptive cruise control, collision warning with full auto braking, plus pedestrian and cyclist detection.

ABS, EBD, traction and stability control are of course there to step in should you need it, too. You’ll find three top tether and two ISOFIX points in the second row for child seats. A space-saver spare is under the boot floor.

BMW continues to offer a three-year/unlimited kilometre warranty for its models, which is disappointingly a couple of years off most rivals these days.

The German giant also does things a little differently when it comes to servicing. Instead of service schedules, it has ‘condition-based servicing’, which is when the vehicle’s computer will inform you when the car needs a service. 

BMW’s Service Inclusive pre-paid plan runs for five years or 80,000km for the 1 Series, and costs $1700 up front when you buy the car. That averages out to about $340 per service, which isn’t bad for a premium marque.

The V40 Inscription is covered by Volvo’s three-year/unlimited kilometre warranty. Volvo has two capped-price servicing programs – the $1600 Smartcare for three years and the $2950 Smartcare Plus for five years.