The battle of the compact SUVs sees the Volvo XC40 and the Volkswagen Tiguan go head-to-head.

When it comes to the compact SUV section of the car market, you’d be forgiven for getting quite overwhelmed.

Spoiled for choice, crowded, plenty to choose from… whichever way you shake it up and pour it out, there’s no denying that there’s no shortage of compact SUVs to pick through for your next car lease.

Which is a good thing, for multiple reasons.

A bit of healthy competition never hurt anyone, as far as we’re concerned (we’re a competitive bunch – you don’t want to see what happened the last time there was an egg and spoon race at Carparison HQ), and the healthy competition among the compact SUV sector has meant that competing brands can’t just shove anything out on sale.

It’s resulted in some of the nicest cars around. Perfect for family life, weekends away, trips to the Isle of Wight, arguments in Ikea – the compact SUV possibilities are endless.

But we can’t possibly compare every compact SUV ever made at the same time. 

And so, we’ve picked two of the best – the Volvo XC40 and the Volkswagen Tiguan – and pitted them against each other to work out which SUV lease you should go for.

Volvo XC40

Volvo XC40

Overview

Formerly Volvo’s baby SUV until the Volvo EX30 got involved, we’ve got a soft spot for the Volvo XC40.

After a lifetime of being the go-to estate car brand, Volvo are quickly becoming known for their SUVs, and for very good reason – they are very good SUVs. 

Sure, the naming convention can be a little confusing to start with, but once you’ve got your head around just how sensible Volvo are, you’ll know your XCs from your EXs in no time.

The Volvo XC40 is still Volvo’s entry point if you’re looking at combustion engines and not whacking great batteries, though it’s not quite as compact as its name might suggest. Still small enough for easy manoeuvring around town and in tight parking spaces, but big enough to comfortably house the family and their elbows without too many arguments.

Hopping from Sweden to Germany, the Volkswagen Tiguan is one of the brand’s best-sellers (at one point it outsold the Golf, which is an impressive feat when you consider that the VW Golf is the go-to hatchback).

First launched in 2007, we’re now two Tiguan generations down the line, but it’s retained all the charm and practicality that has kept it on our roads for over 15 years.

Sure, it’s perhaps not quite as exciting to look at as the XC40.

But if you’re after an affordable compact SUV that does what it says on the tin, you can’t go half wrong with a VW Tiguan lease.

Volkswagen Tiguan

Volkswagen Tiguan

Looks

The Volvo XC40 went through a mid-life facelift in 2022 to bring it a little more up-to-date and freshen up the design. 

It’s quite an angular car, and though Volvo have carefully crafted the XC40 to make sure it stands out among the rest of its SUV lineup, it’s still very much a Volvo. 

And they’ve not shied away from the fact that – though it is on the smaller side – this is still definitely an SUV.

It’s quite chunky to look at, with an aggressive stance and muscular body. Bit weird to describe a car as muscular, perhaps, but this really does look like it’s put in the hard yards at the gym.

No scrimping on leg day for the XC40, we can tell you that for free.

There’s more aluminium body than there is glass, and plenty of sharp lines and cut-outs to keep it visually appealing as well as extremely practical and safe. With the XC40 coming in a range of colours, including several fashionable two-tone colourways, it's a good-looking package all around.

The VW Tiguan is also unmistakably an SUV – and an easy-going and inoffensive one at that.

It’s not trying to be something it isn’t. The Tiguan isn’t quite as chunky or muscular as the XC40, but that doesn’t mean it’s not a good-looking car. It is – just in a slightly more conventional way. And sometimes, you cannot beat convention.

Especially when you’re after a family wagon that gets you all from A-B without breaking into a sweat.

The Tiguan is more than capable of that.

And after all, it’s not just about looks. Don’t judge a book by its cover, if it ain’t broke don’t fix it, and a multitude of other proverbs apply.

While the VW Tiguan might not break any boundaries with its design, it’s still a best-seller for good reason.

Volkswagen Tiguan interior

VW Tiguan interior

Interior

The latest generation of the Volkswagen Tiguan – Mk III, to be precise – has been tidied up a little inside, to better match the uncluttered EV aesthetic that’s all the rage.

It’s been smartened up too, with delightfully soft leather-like materials used in the bits that you look at and touch a lot. There are some scratchier plastics used lower down, but these aren’t overly noticeable day to day, and do help to keep the overall price of the Tiguan down.

The gloss black and silver trim finishings add some much-needed visual flair, while the ambient lighting in the Life trim and the patterned door and dash lighting in the Elegance and R-Line versions add a little pizazz.

And we love a little pizazz.

Volvo XC40 interior

Volvo XC40 interior

The Volvo XC40 doesn’t shy away from pizazz either.

It’s available in two-tone colourways on the exterior, but the colourful aesthetic doesn’t stop there, with the visual options including bits like red carpet on the floor and lower doors.

Quite nice to have the option, when it felt for a while like everything in life (cars, phones, houses) were all becoming a bit beige and same-y.

But if you’re worried about it being a little too fussy, have no fear. Volvo have channelled their Swedish roots and made it all Scandi cool inside, with air vents that stand out from the dash, and wood and aluminium finishes for a little extra je ne sais quoi.

Or whatever the Swedish alternative is.

Volvo XC40

Volvo XC40

Engines

Right, bear with us here while we delve into the intricacies of the Volvo SUV naming conventions.

On a technical level, there is a full-electric version of the Volvo XC40. This was previously badged as the Volvo XC40 Recharge, and there are some older models still kicking around and available to lease. 

However, it’s been rebadged as the Volvo EX40, in keeping with the rest of the electric SUV range (the diddy Volvo EX30 and the mammoth Volvo EX90). 

Still with us?

When it comes to good old combustion engines, there’s not much to choose from. All Volvo XC40’s come with a seven-speed automatic gearbox and 2-litre petrol engine, boosted by some mild hybrid tech for extra efficiency. 

You can pick from the B3, which is the less powerful of the two, or the B4, which bumps the XC40 to 194bhp.

On the German side, there’s a little more choice.

All electric versions are reserved solely for the ID-badged line, with the Volkswagen ID.4 acting as VW’s smallest electric SUV offering.

The Tiguan engine range starts with a couple of mild hybrids, the 128bhp eTSI 130 and the 148bhp eTSI 150, each with a 1.5L petrol engine and mild-hybrid assistance. There’s also a choice of two plug-in hybrids (PHEVs), if you want a little more electric help.

The eHybrids are available with power outputs of either 201bhp or 268bhp, and electric-only ranges of 72 and 77 miles. That’s competitive for this class and means that you could do the majority of your weekly journeys powered solely by electricity if you have the means to keep the battery topped up.

And if you’re a diesel lover, there is a 2.0 TDI, with 148bhp.

Volkswagen Tiguan vs Volvo XC40 boot

Volkswagen Tiguan (left) vs Volvo XC40 (right) boot space

Practicality

Being SUVs, albeit compact ones, both the Tiguan and the XC40 are extremely practical, especially if you have a young or small family (and all their odds and ends) to cart around.

The Volvo XC40 is a solid and upright SUV that isn’t pretending to be anything but an SUV, which means that the cabin is extremely spacious. And while it is classed as a compact SUV, and it’s the second smallest Volvo on the market, it’s really not that small when you stand next to it.

Which makes it perfect for a family lease.

The cabin is big enough to cope with everyday family life, and there’s plenty of clever storage solutions dotted about to keep all your bits tucked away and out of sight to maintain the illusion that you do have it altogether, and your car definitely isn’t a bit of a mess.

Don’t worry. We won’t tell anyone.

Volkswagen Tiguan

Volvo have also fitted the boot with a bit of origami-esque trickery which allows you to divide the boot into two, making a nice deep trough to stop your bags and bits from taking a tumble. 

Speaking of the boot, it clocks in at a generous 452 litres with the seats up, and 1,319 litres with the seats down. Not class-leading, but certainly good enough for everyday life.

The Volkswagen Tiguan, on the other hand, has a seriously large boot in comparison to its size, with 652 litres of space to play with before you even start folding seats away.

Coupled with its 40/20/40 split folding seats, and you’ve got yourself a very flexible machine to take trips to B&Q and the tip with. 

The cabin is spacious too, with plenty of head and leg room for occupants (even if they’re on the taller, 6 foot plus side), and there’s plenty of storage dotted around, including front door pockets, a cubby below the central armrest, two cupholders and space for some phones under the central air vents.

The seven-seater Tiguan Allspace has been done away with, if you needed the additional seats over a massive boot, but there will be a new seven-seater coming next year, named the Volkswagen Tayron, to plug the gap.

Volkswagen Tiguan

Technology

As is standard for new cars in 2024, both the VW Tiguan and the Volvo XC40 are absolutely crammed to the rafters with all the latest technology to make your life comfier and easier.

The Volkswagen Tiguan comes as standard with a 12.9in screen, though there is a larger 15in screen available with the purchase of an optional tech pack. Unfortunately for anyone who loves a physical button, the touchscreen does reign supreme in the cabin, with all the controls going through it.

VW have said that it will be using buttons in the future to ‘enhance the experience’ alongside the touchscreens, but for now you’ll be flicking and tapping with the best of them. 

Thankfully, the screen is intuitive and responsive, and you can configure the screen to have your most-used shortcuts along the top to make life a little easier on the go. There is also a ChatGPT boosted voice command system, so you can chat to your car and get it to do most of the fiddlier stuff while you’re bowling down the M5.

Safety wise, the Tiguan comes as standard with automatic emergency braking, blind-spot monitoring, rear cross traffic alert, lane-keeping assistance, traffic sign recognition and a system that monitors driver fatigue.

The Volvo XC40 is also reliant on its 9in central screen, with the majority of the cabin controls going through the system. There are quite a few menus to flick through to get to where you want to be, which can be a little tricky to use on the go.

But like with everything in life, it doesn’t take long to get to grips with, and you’ll soon be navigating through the infotainment screen with your eyes closed.

Though do, please, keep your eyes open while on the go.

There are plenty of features included in the infotainment system, as expected with tech-savvy Volvo, including a built in sat nav powered by Google Maps, Apple CarPlay (no Android Auto, unfortunately), and Volvo On Call, which alerts the emergency services if you’re involved in a collision.

And, of course, with the XC40 being a Volvo, there’s an impressive amount of safety kit included as standard, including automatic emergency braking, traffic sign recognition, and Oncoming Lane Mitigation.

Volvo XC40

Volvo XC40

Specifications

Both Volkswagen and Volvo keep things pretty simple when it comes to the specifications, with the Tiguan having five trims to pick from, and the XC40 a mere three.

The Volvo XC40 lineup starts with the Core, which – in fairness – is crammed with all the bits you could need, including cruise control, keyless start, dual-zone climate control, LED headlights, heated front seats and rear parking sensors.

Hop up to the Plus, and you’re still paying a reasonable amount per month, with the addition of some nice little extras like keyless entry, heated rear seats, a heated steering wheel and blind-spot monitoring.

Ultra rounds off the range, and adds luxuries like a Harman Kardon sound system, tinted rear windows, a sunroof and 19in wheels. All very nice to have, but personally we’d stick with the Plus trim to maximise value for money.

Volkswagen Tiguan

The entry-level Tiguan isn’t much to write home about. 

It has all the basics, like 17in alloys, front and rear parking sensors, a rear parking camera and LED lights, but you’re better off starting with the Life trim. It adds three-zone climate control, adaptive cruise control, 18in alloy wheels, ambient lighting, wireless phone charging and sat nav.

In the middle is the Match trim, adding keyless entry, a powered tailgate, and rear privacy glass. Next up is Elegance, which adds some additional luxuries to the Tiguan, including 19in alloy wheels, heated seats, heated windscreen washer jets, heated steering wheel and massaging front seats.

It’s really the trim you need if you really feel the cold.

The R-Line completes the set and swaps those little luxuries for sportier styling and nice big 20in wheels.

Volvo XC40

Volvo XC40

Verdict

When it comes down to choosing between the two, it really does depend on what your priorities are.

If you favour flexibility and boot space over everything else, then hands down a VW Tiguan lease is for you, what with its massive boot and versatile folding seats.

But if you’re looking for style and pizazz, then you’ll favour a Volvo XC40 lease.

Truly, you can’t make a bad decision here. 

They’re both excellent cars, do exactly what they say on the tin, and will look very nice sat on your driveway/garage/on street parking/workplace car park.

Ready to get behind the wheel of your favourite SUV?

Beth Twigg

Beth Twigg

Beth is our Content and Paid Media Specialist, tasked with creating great articles to keep you both entertained and informed. She has two years previous experience, but has been writing and scribbling for much longer.