Doesn’t it almost feel like every great enthusiast car’s been discovered already? We’re living in an age of five-figure Volkswagen Cabriolets, six-figure Fox-body Mustangs, and rebuilt-title Honda S2000s that cost as much as new Civics. If everyone knows how good a car is, and it’s no longer in production, its value is going to go up. Simple supply and demand. So what about a car that flies under the radar? Something like the Volvo V50 T5 AWD.
In the pantheon of internet car-person cars, wagons hold a hallowed place, at least in North American minds. The combination of sedan-like handling with enough cargo space to swallow an antique chest makes for left-brained daily drivers that elicit fierce loyalty. To some wagon drivers, seppuku is preferable to driving a crossover. Dramatic, sure, but I get it.
The Volvo V50 T5 AWD is more than just a simple wagon. Sure, it might not be big, and it might not be the most practical wagon out there, but it represents a truly rare combination, the sort of thing that’ll probably never happen again. If you really search, and really look hard, you can find one with the holy grail: A manual transmission. Tempted?
One Big Family

Back in the early 2000s, Ford owned a lot of stuff, including huge stakes in Mazda, Volvo, Jaguar, Land Rover, and Aston Martin. An umbrella so big, multiple brands had models roughly the same size in similar markets. How do you make that more cost-effective? By engineering one platform for every compact car, for instance. Different floors, sure, but the same subframes, running gear, and certain hard points would be identical across the second-generation global Ford Focus, the Mazda 3, and Volvo’s myriad small cars. This brought costs down, but also allowed enough freedom for every brand to sort of do its own thing.

Mazda kicked things off, and while the original Mazda 3 didn’t prove to be the most corrosion-resistant machine on the planet, it was handsome and drove well. A mix of Z-series and L-series engines proved adequate for every market, and pricing was remarkably reasonable. Likewise, Ford initially took a sensible approach, building a sharp and modern front-wheel-drive compact car that, sadly, would never make it to America. Why? Well, the American small car market has historically been tighter of wallet, and Ford was reportedly concerned about ramping production smoothly. As Automotive News reported, “Suppliers say Ford is worried about quality glitches after the botched launch of the current North American Focus.” As for Volvo? Well, that’s where things get interesting.
Big Dreams

Just as the European Mk2 Focus covered all bases on body styles, Volvo decided it wanted a little bit of everything. A sedan, a three-door hatchback, a hardtop convertible, and a wagon. However, because the respective S40, C30, C70, and V50 would appeal to a more well-heeled clientele than the hoi polloi Focus, the Swedish brand had a few tricks up its sleeve. No, I’m not just talking about the flying VCR remote center console.

While an inline-four is perfectly adequate for everyday transportation, it’s not the smoothest engine configuration out there. A V6 is silky, but hard to package in a small car. Thankfully, Volvo already had a lineup of inline-five-cylinder engines, and it was keen to chuck a couple under the hoods of its most affordable models. While 2.4-liter naturally aspirated variants dutifully turned out up to 168 horsepower, the fun really started with the 2.5-liter turbocharged straight-five. Initially making 217 horsepower and 236 lb.-ft. of torque, it was enough to outpower the turbocharged two-liter four-banger in the then-incoming Mk5 Volkswagen Golf GTI, and it could be hitched to a manual gearbox. Ford would go on to put it under the hood of the Focus ST, mighty good stuff. However, Volvo wasn’t done there.

As strange as it might sound to North American ears, all-wheel drive was becoming a thing in European C-segment cars. Volkswagen offered continental consumers several variants of Mk4 Golf equipped with Haldex all-wheel drive, and Audi had the A3. At the same time, the S40 and V50 would be competing for attention with the BMW 3 Series and Mercedes-Benz C-Class in America, both of which offered all-wheel-drive models. The solution was a similar sort of Haldex all-wheel-drive as Volkswagen used, which, put together with the top-shelf T5 engine, meant that Volvo once sold a genuinely compact turbocharged five-cylinder manual all-wheel-drive wagon. Fantasy stuff, the sort of car that could never make it to America, right? Guess again.
Coming To America

Yep, Volvo decided to not just homologate, but sell the stick-shift V50 T5 AWD in North America. A brave move, and one that made some sense at the time considering Volvo had real competition in the form of the row-your-own BMW 325xi Touring. So how did the V50 translate across the Atlantic?

Well, when Car And Driver tested an early automatic model, it turned out to be surprisingly quick. While zero-to-60 mph in 6.9 seconds isn’t groundbreaking today, it was enough to outrun the E46 BMW 325xi wagon and the Audi A4 3.0 Quattro. Perhaps the most surprising thing about the V50 T5 AWD, however, wasn’t the straight-line speed, but the handling. Not only was 0.85 g on the skidpad enough to beat the Audi and BMW, but the optional stability control seemed made to play.
Toss this V50 into a four-wheel drift on your favorite off-ramp, and the stability control doesn’t activate while you’re at play. However, if you do something rash, like suddenly get off the throttle in mid-drift, the rear end will start to come around, at which point the stability control steps in and brings you back to reality. This is the kind of strategy we appreciate in stability control. It’s well executed in the new V50, well worth the $695 option price, and very fitting with Volvo’s safety image.
Read between the lines, and yeah, you can drive a V50 T5 AWD like you stole it, all while experiencing great ride quality and a thoughtful interior. That floating center console really felt like the future in the mid-2000s, and that’s before you consider the lovely materials and sheer quantity of goodies on offer. A 12-speaker Dolby surround sound audio system? DVD navigation? Rear seat integrated booster cushions? Laminated side glass? If you went crazy with the options list, absolutely.
Hunting High And Low

Unsurprisingly, stick-shift examples of the Volvo V50 T5 AWD are rare in North America. The market for turbocharged wagon crazies was small even in the mid-2000s, but the cult of Volvo means that a wide enough net will pull up a handful. Want to go absolutely bargain-basement? This seemingly hail-damaged red 2007 example with 148,613 miles on the clock is up for sale in Minnesota for $1,100. That’s a ludicrously cool car for $1,100.

On a less-sticked-up note, this manual 2007 V50 T5 AWD is up for sale in Connecticut, and it looks positively standard. The seats and bodywork look to be in great shape, and it’s a high-option car, but it will require a little wrenching. The selling dealer states “The one drawback is it seems the AWD is not currently engaging, not sure it’s a Haldex or a collar sleeve issue.” That’s a gamble for an asking price of $5,700, but if a deal gets struck by someone with some real wrenching knowledge, this wagon could be spinning all four tires again.

If the logistics of a fly-and-drive are a bit of a pain, these all-wheel-drive wagons do occasionally pop up on enthusiast auction sites. Here’s a 2010 model that sold on Cars & Bids last year for $9,200. That might sound steep for a slightly dented example with 162,200 miles on the clock, but it has some noteworthy points. Not only is it a facelifted example with a slight bump in power, but it’s rocking some seriously expensive KW coilovers and Tarox brakes.

We’ll probably never see a small, upscale, turbocharged, all-wheel-drive, stick-shift wagon again on our shores, which makes the Volvo V50 T5 AWD a very if-you-know-you-know thing. Pricing is all over the map, but the one thing these have in common is that they’re within a sort-of enthusiast budget that makes them attainable.
Top graphic image: Volvo






I test drove one while I was still in law school – half because I loved the look of it, half (ok, maybe a bit more than half) because the local Volvo dealership was offering two free lift tix at the Canyons for anyone who took one out and signed up for a bunch of marketing emails.
Loved the driving dynamics, and was a bit shocked at the reported 0-60 time (it felt much quicker). And don’t forget that seductive waterfall console…still one of the coolest automotive design features I’ve ever seen.
Sadly, it was a little too pricey for my not-yet-graduated self; more sadly, it was a terrible snow year (reminiscent of this year TBH), and the mountain was receiving steady rain the day my buddy and I decided to use the tickets.
Having owned one of these, a few warnings for potential buyers. 1.) they are only really fast in a straight line. even then, torque steer is to unacceptable levels on FWD cars. 2.) the clutch on these is…. just terrible, the engagement point is suuuuuper narrow, and it makes it difficult to get smooth shifts out of it. 3.) the traction and stability control comes down like a hammer the moment you try to have fun with it. 4.) it genuinely sucked to work on…. oil changes required removing parts of the intake plumbing to get the filter out. I bought one after having a 240 wagon for 5 years. and after dealing with it for 5 years, i sold it, and still have (and am quite happy with) my 240.
I test drove one of these and it was fine but not great. I ended up buying an e91 325xi, it was not faster but was much better to drive and sit in.
This car looked great on paper, just as it looked great on the road. I wanted one until I sat in one. The headrest was rock-hard, non-adjustable, and angled so far forward that I could barely make it around the block. Were they all like that?
In Volvo circles these are universally considered to be hot garbage, and WAAAY more Ford than Volvo. Better than the preceding Mitsubishi-based S40 and V40 though (when did you see one of those on the road last?) If you want that engine, buy it in a V70. The experience will still likely expensively suck, but at least the car will be nicer.
A shame too, as Volvos of this era LOOK great inside and out (though the interior experience fails when you start actually touching things – they obviously got the plastics from Ford). They are decently made in terms of rust resistance. And the fives ARE stout engines mechanically as long as they are properly maintained – which is not cheap. But the electrical architecture sucks donkey balls, they are wedded to the dealer in ways that the Germans simply aren’t and they don’t drive well enough to make up for those other downsides. So you end up with an expensive to maintain car that is really nothing special to drive, even if the full-fat turbos are decently quick in a straight line. The handling is rubbish on all of them, and the more sporting versions ride like oxcarts. BTDT, never again.
I was just going to ask if the steering and maintenance were as bad on these as on V70s. Sounds like yes.
Consensus seems to say “worse”. Probably handles better given the Ford roots, but I have never driven one of these. I have not been THAT impressed by any of the C30s I have driven though, which doesn’t bode well. A GTI is a MUCH better drive than a C30. Steering feel is fine, but the turning circle is abysmal on all Volvos of this era. Jamming the five into an even smaller car did nothing any favors.
yes. the electric power steering on these is very very numb and not particularly reliable.
Great, now im gonna have to message that guy in CT about that volvo, sounds way better as a winter beater compared to my current 07 accord and probably fit three kids way better
I had a 2012 V50 T-5 R-Design, Which was then only trim optios after 09 which you could get the T-5 or AWD. This car was my all time favorite, and an absolute blast in every occasion. It got wrecked after 4 years of ownership in 22, and the insurance payout was $36 more than I paid for it.
The gray one pictured above is the R-Design, but it’s got the wrong wheels on it. They came standard with a beautiful flat 5 spoke, similar to the V70R wheel, but slightly less stunning.
Mine has a mild tune to 230hp or so it’s really fun, sort of like a rollerskate
These are cool. The turbo 5 is a torquey thing that sounds better than a four. The only criticism I have is that the interiors were too stark. That’s a lot of dull looking grey with big empty expanses of paneling.
The 2010-14 Jetta Sportwagen was a way to get something similar for much cheaper. It too had a 5-cylinder and stick (not turboed but pretty good power anyway), similar interior space, good over-the-road refinement, and a richer-looking interior for about about 2/3rds the price.
Now we don’t get nuthin’ similar.
The floating console had a whole lot of different materials from the standard silvery plastic that every car had to actual timber either a shiny varnished teak looking through to a really nice blond birch and can really lighten the interior.
These are almost criminally-underrated cars. Even James May liked them, even though he didn’t make the best use of its cargo-carrying capabilities.
It’s a pity the V50 (and S40) didn’t get the face-lift that the C30 and C70 got for 2010.
I’ve entertained thoughts of the V50 in the past, though at this point I don’t think it’ll ever happen. They were really nice-looking cars. Years ago, before I had any wrenching skills, or probably just as importantly, any place to work on my car, I took my 850 wagon to the dealer for service a couple of times, and one time got a base, automatic V50 as a loaner. It made exactly the same amount of power as my non-Turbo 850, but it had much more of a puppy-dog demeanor, with a little more audible snarl from the five and really enjoyable handling. That floating console was cool for 2006, too.
I look forward to reading this same article again in about a decade. Except for the second go around, it will be about the just recently deceased V60 T8 Recharge. Which for some reason, included: a turbocharger, a supercharger, a plug-in hybrid system, AWD, and standard Öhlins dampers, all in the same vehicle. It’s known about in some circles right now, but considering how few ended up selling new, I suspect it will meet a similar fate as this V50 and fade into the upper-middle-class suburbs of the northeast with little fanfare.
I didn’t realize that the last V60 T8 had 41 miles of electric-only range, AWD and 455 hp and 523 pound-feet of torque. It lost the supercharger though, turbocharged PHEV only.
I think you mean fade into the suburban junkyards of the Northeast, which is where most V50s have ended up too. Unless you are the most dedicated of DIY enthusiast, you will not be able to afford to run an aging/failing V60 T8 Recharge. They are the definition of wedded to the $realership. About John Deere levels of wedded. Even my ’04 V70 could have about nothing involving the electronics sorted without a “software download” from Mama Volvo, and they have only gotten worse in that regard. And it needed lots of sorting, despite being a stone ax compared to one of these.
I always thoughts these were handsome beasties.
Perfect to pair with a C70 coupe/cabrio – which was also on the same platform and shared pretty much everything forward of the front doors!