Do Volvo do a diesel? I think it's the combination of the cargo capacity of the Outback, the car-like handling, and the fuel economy of the diesel that makes this car such a great proposition. On road trips I still get astonished at the 1,000km per (55L) tank, it's just awesome!
No diesel in Canada - but the newer 2.0T + 8-speed are pretty darned efficient given the performance.
All that said, one thing about the V60 is that cargo room - if that is important - is pitifully small, given its “wagon” status. Probably only a tiny bit bigger than an Impreza hatch
That $42k (with freight) Volvo V60 lacks leather, xenons, navigation, keyless start...
True, but you have other advantages with the Volvo; amazing seats (even in the base model), powerful/efficient drivetrain, build quality (maybe actual quality is the same as VW - really have no idea - but perceived interior/exterior build-quality certainly seemed a cut above the Mk.7 when I looked at both). I guess it depends on one's priorities.