Audi A3

In crowded European cities, small, space-efficient vehicles are very popular because of their versatility, fuel-efficiency and nimble nature. These vehicles exist in America as well, but they are not typically offered by luxury automakers as it's assumed that Americans associate compact vehicles with cheapness. One vehicle meant to break that tradition is the Audi A3.

Introduced a decade ago in Europe and brought to the United States in 2006, the A3 is Audi's entry-level model for the North American market. Roughly a foot shorter and about 400 pounds lighter than an A4 2.0T Avant Quattro, the front-drive Audi A3 Sportback presents a strong argument for buying a bargain sport wagon, provided one goes easy on the options. With the same powerful turbocharged engine as its bigger brother, the A3 2.0T performs like a sport sedan that happens to have a maximum cargo capacity of 56 cubic feet, just 3 cubes less than its larger sibling. And just because this is Audi's entry-level car doesn't mean the company cuts corners on quality. The cabin's design and materials are up to the lofty standards that Audi has set for the industry, meaning everything fits tightly, moves with precision and looks and feels top-shelf.

Slowly but surely, small European wagons are filtering into the States, so the Audi A3 does have some competition. But those who appreciate the distinct German flavor of Audi, meaning one of engineering excellence combined with an upscale cabin, will find plenty to like in the A3 Sportback.

Current Audi A3

The Audi A3 is available in 2.0T and 3.2 Quattro trim levels. Slip inside and it's readily apparent the A3 continues Audi's tradition of utilizing first-class materials throughout the cabin. Real metal rings around the dash vents and audio controls are accented by the solid action of the gear selector and climate-control dials. Standard features on the 2.0T include dual-zone automatic climate control, 17-inch alloy wheels, one-touch power windows, keyless entry and a 10-speaker sound system. Step up to the 3.2 Quattro, and the list grows to include amenities like leather seats, a power driver seat and satellite radio. Options include xenon headlights, a navigation system, a sunroof and an upgraded sound system. But go crazy on the options and the A3's sticker will rapidly approach uncomfortable levels.

Enthusiasts will appreciate the 2.0T's engine, a sprightly turbocharged 2.0-liter four-cylinder with a broad power band. If you want Audi's Quattro all-wheel-drive system, you have to go with the 3.2-liter V6 hooked up to the automatic. Both are offered with a standard six-speed manual transmission: Audi's six-speed Direct Shift Gearbox (DSG) automatic that allows rapid, rev-matching gearchanges via paddles next to the steering wheel is offered as an option.

As with the rest of the Audi family, the A3's chassis strikes an agreeable balance between athletic handling and a comfy ride. Its steering does a superb job of dampening out unwanted road vibrations and kickback without marring the sublime feedback enthusiast drivers crave. At the same time, the suspension keeps the A3 buttoned down without transmitting harsh road impacts to the cabin.