Wow! The best all purpose German car on the road

The car search that led to the purchase of the A3 explains well why this car is the most underrated on the road in the US these days.

With the birth of our first child, my wife wanted a car which received high marks all around on safety, gets better than average fuel economy, had a degree of luxury in the interior, was fun to drive, and avoided all stigmas of suburban life - namely the minivan, the SUV, and the family sedan.

All options were put on the table, and the list was narrowed down rather quickly. We decided to look at a combination of hatchbacks and sedans: the BMW 328i sedan, the Audi A3 and A4 Avant, the Subaru Outback XT, the MINI Clubman S, the Infiniti G35, the Mazda 3 5 door, the Volvo V50, the Passat wagon, and the Lexus IS 250.

Once reasonably equipped, the Volvo V50 and Passat wagon were very close in price to the BMW 328i sedan, which while not a hatch has a large trunk. Poor resale value, mediocre fuel economy weighed against BMW's excellent maintenance program eliminated the Volvo and Passat from elimination.

The Lexus IS250 didn't satisfy any one need strongly enough to be warranted (not a great driving experience, not enough storage space, and too expensive against the G35 sedan). Likewise, the G35 equipped with a manual and optioned the way my wife likes priced it very close to the 328i, once again factoring in fuel economy and future maintenance costs.

IMHO, the Mazda 3 felt too cheap and too expensive equipped to our likings, although it was fun to drive. Ditto for the Subaru.

Being prior MINI owners, we tried the Clubman but contrary to what others may think, it ain't no MINI.

So we were looking at the A3, A4 Avant, or 328i sedan.

We first test drove the A4 Avant. We liked the available Quattro but again felt it was too close in price to the 328i and given the model is getting a full redesign this year, would likely have a steep depreciation and leave us with buyers remorse.

On a whim, we test drove the A3, and knew immediately this was the car we would purchase. You can go hog wild with options, but if you keep your cool, you can get a well equipped luxury hatch that will turn heads and leave every suburban housewife envious and satisfies the inner rally driver in you.

On to the specifics...

Exterior styling:

When you look at the A3, there's no question the best design elements of its larger siblings were passed down to the A3. The A3 has a slightly aggressive stance, and the way the lines reach to the hood where you see the signature Audi emblem and grille just work well.

The standard alloy rims are signature Audi, but I found the 5 spoke rims which come with the upgraded S-Line Package much more attractive.

Interior styling:

The interior isn't as luxurious looking as a Lexus or a Mercedes, but it is clear the cabin is built from quality materials and assembled well. Fit and finish is outstanding. Everything serves a purpose inside the car, and it doesn't take a PhD to figure it all out. The solid thunk the door makes when it is closed shut best expresses the build quality and styling of the A3. It beats even the new BMW 3 series interior hands down, but be wary of the upgraded navigation system and iPod integration. The navigation is showing its age in functionality and ease of use, and the iPod integration...well, it just doesn't work well in many cars, but this isn't Audi's fault.

If you have a great need to transport cars full of tall adults, you may find the A3 doesn't fit your needs. Front seats are great (the Sport seats that come with the optional S-Line package are even better) for those up to about 6'4" in my experience. After that things start to get cramped.

Likewise, the rear seat is fine for up to 3 kids or average height adults, but this isn't a car you want to be taking long road trips with people 6 feet tall in the rear seat. They're comfortable - but to a point.

Going with the optional Open Sky package will provide some openness and make the car feel bigger, so if you can spend the extra $1200 or so, this is definitely worthwhile. Those in the backseat will appreciate the extra light and perception of extra space.

Storage compartments seem to be tucked away throughout the Audi for your change, knicknacks, beverages, and what have you. As a new parent this is a great feature of the A3 that everyone would probably overlook.

The trunk, while not the largest, does the job for around the town errands and storage. We can easily fit a stroller, groceries, and baby gear in the trunk without the seats folded down and the privacy guard up. More serious cargo hauling can be accommodated by folding down the rear seats, which gives you more cargo than most wagons or sedans, and even some mid size SUVs.

Performance:

Performance is really where Audi sets itself apart. If you don't care how fast you can get from point A to point B, or always drive in traffic, or don't care whether you can feel the road or turns, you probably don't need and wouldn't appreciate the A3. If you like to drive, though, you'll be satisfied with the DSG or with the manual transmission. My wife who would never consider an automatic, loved the DSG. But we decided the ~$1000 would be better spent towards other options.

There is plenty of torque in the lower gears, and the A3 just begs to be let loose on the highways. The sport suspension of the S-Line package will give you better connection with the road and allow you to take turns a bit faster. Getting up to 60 can be accomplished in less than 7 seconds, hardly anything to sniff at.

Purists may find FWD unacceptable in a car like the A3, but if you want a hatch like we did, there aren't any real options in the A3's price range out there. In either case, torque steer is not terrible but can be noticed sometimes.

Road noise can be an issue when you get up to 65+ MPH, but it's not terrible and certainly comparable to the A4 or BMW 3 series.

Steering is responsive, as one would expect, and whether you're going a couple miles or on a road trip, you'll find yourself smiling when you get there.

Fuel Economy:

Audi advertises 21 city/29 highway for the base 2.0 liter engine, but so far in mixed driving (50% city 50% highway) we've been getting 26 miles per gallon. I expect this to increase as the engine is broken in.

Audi says premium gas only, but then again so do most of the other cars in this price range. Who knows where gas prices are going long term, but the spread between unleaded and premium seems to be narrowing where I live. If you can't live with this you shouldn't be considering this car.

Safety:

Top scores from the IIHS in front and side impact tests. Nuff said!

Maintenance and Upkeep:

If you like hatches and really enjoy driving, I think the A3 sells itself. Where you need to put some forethought is how long you intend to keep the A3. Maintenance is not free when you buy this car, so I recommend getting the Audi Care from your dealership. Some dealers throw this in free, others charge MSRP which is around $650. It will pay for itself.

The A3 is a popular and proven car in Europe, and should prove to be more reliable than other cars from Audi or VW. But, there are some horror stories about Audi of America, so make sure you follow their maintenance program, and make sure you have your car serviced at Audi authorized service centers while it is under warranty. You don't want to allow a situation to emerge where they can make repairs a hassle.

Likewise, long term maintenance can be expensive as with all German luxury cars, so consider an extended warranty when you get close to the expiration of the manufacturer's warranty.