I have the S40.
The 2.0D engine is great, bags of torque, not the most refined by today's standards, but the S40/V50 are great motorway cruisers, ride well and handle well. In 6th gear the engine is turning over at 1950 RPM, and I have achieved average fuel consumption of around 47 (brim to brim) since I bought it almost 4 years ago.
If you go for one, try and get one without the DPF (particle filter) as these can give problems in later life. Before mid 2007 some had them, some didn't, but after that date, all did.
I have driven the 2.0 petrol and I honestly didn't like it, to me it felt flat as a f*rt and slower than my wife's 207 1.6 VTi auto.
The seats are about the best in the business, get heated leather ones if you can. Only Saab seats come close for long distance comfort.
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