The compact Audi A3, with prices starting around low $30,000, is the latest in a wave of small luxury-branded models for buyers who have one eye on their budget and the other on gas prices. Derived from the Volkswagen Golf, the A3 might lack the posh, roomy environment and long list of features found in true luxury cars, but it's a solid, agile, and sophisticated sedan that's enjoyable to drive. And unlike some other entry-level luxury cars that have veered away from their brand's DNA, like the Lexus CT and Mercedes-Benz CLA, this small car actually feels, drives, and looks like an Audi.
With its agile handling, minimal body lean, and quick response to steering inputs, the A3 carves up winding country roads with confidence. The steering is a bit vague on center and at low speeds, but it firms up nicely at higher speeds. The ride is quite firm, particularly at low speeds, but it does a commendable job of absorbing and isolating most bumps.
Our front-wheel-drive A3 Premium came with Volkswagen's 170-hp, 1.8-liter turbocharged four-cylinder engine. The only transmission is a six-speed automated manual. There is ample power once underway, but power delivery isn't fluid and the car feels flat off the line, leading to complaints from staffers about hesitation when pulling into traffic. We measured a commendable but not outstanding 27 mpg overall.
To get Audi's Quattro all-wheel drive, you need to step up to the livelier 220-hp turbocharged four cylinder.
The interior is nicely finished and fairly quiet, and the front seats are very comfortable. The rear seat is cramped -- not surprising for a compact car.
As you might expect at this price, you won't find a plush Audi cabin in the A3. The interior quality is pretty good, but it's rather businesslike, bordering on austere. The controls are almost identical to other Audi models, and they can be complicated to use at first.
Unlike the previous A3, which came only as a hatchback, the initial A3s were all sedans. A hatchback version with a plug-in hybrid engine is new for 2016.
The A3 has an inviting price, but you could save a few thousand dollars and get a similar driving experience by buying a Volkswagen Jetta GLI or the new Golf. Of course, you would give up the prestigious Audi badge as well as the availability of all-wheel drive.
A sporty S3 version is also available.