After a one-year hiatus in 2021, the Audi A3 and its sporty sister, the S3, are back. The 2022 versions are all-new, and bring the model into its fourth generation, though the original wasn’t sold in the U.S. At 177 inches long, the A3 is Audi’s smallest U.S. model, but it doesn’t lack for fun, features or flash.

The A3 and S3 go head-to-head with the Mercedes-Benz’s A-Class and CLA-Class, as well as their sportier AMG variations. Both are front-wheel drive-based four-door with an all-wheel-drive option. The Audi’s also battle BMW’s different 2 Series models, the front- or all-wheel drive Gran Coupe and new rear- or all-wheel drive (AWD) two-door models, the 230i and M240i. Slightly different, but still a direct competitor, is the Cadillac CT4, which is rear-wheel-drive to start but makes AWD optional across the model line.

The Audi A3 is available in three trim levels: Premium ($35,895, including destination), Premium Plus ($39,195), and Prestige ($43,195). These base trims are all front-wheel drive. Audi’s optional Quattro AWD system adds $2,000 to any of the trio. A3s come with a standard 201 horsepower turbocharged four-cylinder engine with a 48-volt mild-hybrid system and are mated to a seven-speed automatic transmission. Unfortunately, this motor is down 27 horsepower from the one in the previous A3.

Although evolutionary from previous A3s, the all-new 2022 model cuts a chiseled and handsome profile that looks better proportioned than its predecessor.  Audi

The hotter S3 follows a similar trim template with Premium ($46,895), Premium Plus ($49,695), and Prestige ($53,495) models. These models feature a boosted, 306 horsepower version of the same 2.0-liter turbocharged four-cylinder, and a seven-speed automatic transmission. Quattro AWD is standard on all S3s. Unlike the A3, the S3 gains 18 horsepower over the old 2020 version. Audi also offers an even faster, 401-horsepower RS3, which we recently sampled.

Both versions offer the same equipment at each trim level. Premium cars come pretty well equipped with power-operated adjustable and heated front seats, a panoramic sunroof, wireless Apple CarPlay and Android Auto, 17-inch wheels (18 inches on S3), and a lane departure warning system. Stepping up to Premium Plus adds adaptive cruise control, memory settings for the driver’s seat, and wireless charging. Prestige models add LED headlights, an upgraded Bang and Olufsen stereo, the Audi virtual cockpit with an adjustable 12.3-inch color LCD screen in the instrument binnacle, a head-up display, and advanced navigation capabilities.

Both the A3 and S3 offer a sophisticated and upscale cabin that looks just like the ones in the larger, pricier Audis. The lone off-key note is the stubby toggle switch shifter, which takes some getting used to. Trunk volume is a measly 10.9 cubic-feet and an even more restrictive 8.3 in the S3, but many competitors don’t offer all that much more and the A3 carves out a roomier back seat than most of its peers. 

Both the A3 and its speedier sister, the S3, are spirited performers and rewarding drives despite having marginally less power than their predecessors. For enthusiasts, the faster S3 is probably the better choice. Audi

Performance: 12/15

The front-wheel-drive A3 hustles from 0-60 in 6.6 seconds, powered by a 2.0-liter four-cylinder with a 48-volt hybrid system making 201 horsepower and 221 pound-feet of torque. The added grip of Quattro AWD lowers this to 6.3 seconds. Both are good for a 130 mph top speed. 

The AWD-only S3 cuts this down significantly. A hotter version of the A3’s 2.0-liter four produces 306 horsepower and 295 pound-feet of torque in the S3, good enough for a 0-60 time of 4.5 seconds. That just bests its closest competitor, the AMG A35, and increases top speed to 155 mph. Either way, the car feels spirited, sprightly, and a delight to drive, with controlled movements belying the car’s 3,300 to 3500-pound weight. It is responsive and tossable. Both The A3 and S3 use a seven-speed dual-clutch automatic transmission. For a deeper dive on the S3, read our first drive review.

For those looking for extra performance, the S3 is clearly the way to go, though the $10,000 premium may seem steep. The BMW 240i offers significantly quicker acceleration and more engaging handling from its rear-wheel-drive biased setup, but it also means living without a meaningful back seat. Regardless of which model A3/S3 you chose, the nubby shift switch for moving from park to reverse to drive looks shrunken and silly, and both of those adjectives come to mind when you use it.

At the apex of the A3 universe is the RS3, and you can read our first drive of that model for more information.

Fuel Economy: 15/15

The Audi A3/S3 line delivers an average of 30 mpg which makes it the best in its competitive class. The BMW 2-Series coupe lineup achieves an average of 27.5 mpg while the Mercedes-Benz A-Class hits 27 and the CLA-class manages 26.66 mpg. The Cadillac CT4 line falls short with just 23.13 mpg. The front-wheel-drive A3 offers an impressive 38 mpg on the highway, and even the speed S3 does 1 to 1 mpg better than its opposite numbers in most statistics.

Safety & Driver Assistance Tech: 14/15

The Audi A3 has not yet been crash-tested by the National Highway Traffic Safety Administration (NHTSA), but the the Insurance Institute for Highway Safety (IIHS) gave it a Top Safety Pick award in October 2022. The 2023 model year was designated the higher Top Safety Pick+, but the 2022 had poor ratings for two headlight systems. The European and Australian New Car Assessment Programs (EuroNCAP and ANCAP), agencies which perform similar tests, both give the cars five-star ratings. 

Every A3 features 10 airbags. They also include a decent suite of advanced driver assistance systems including forward collision warning, lane departure warning and automated emergency braking with pedestrian detection. Other safety systems like adaptive cruise control and blind spot monitoring are available as options on the Premium Plus trim via a $2,250 technology package.

 At 177.3 inches long, the A3 is more compact than some alternatives like the BMW 2 Series and Cadillac CT4, but it has a larger back seat area than either.  Audi

Comfort & Room: 14/15

The A3 is a roomy and comfortable car for its diminutive class. There’s plenty of room for drivers of all sizes in front, and the seats are comfy and supportive. It beats all of its competitors on rear passenger legroom by a significant amount, particularly the cramped BMW two-doors. The cushions in all four positions are comfortable and easy to relax into. The cabin materials are of high quality overall.

Infotainment: 15/15

The A3 features a standard 10.1-inch touch screen. It is appreciated that it offers hard buttons for some key features like seat heaters or climate adjustment. Apple CarPlay and Android Auto obviate the need to master anything else integrated into the system, and a head-up display does the same for the lovely if now unnecessary special Audi LCD dash pod display. 

The upgraded Bang and Olufsen stereo is part of the $2,250 Technology Package on the Premium Plus model, and is standard on the Prestige, but is not available on the base Premium model. Ambient lighting adds a touch of delight around the cabin. But the touch-sensitive volume control selector ahead of the shift nub is fiddly. While there are a few too many controls routed through the touchscreen, there are at least redundant switches for these operations on the steering wheel.

Compact premium sedans aren’t known for trunk space, and the A3 is no exception, with just 10.9 cubic-feet of volume. The S3 is even worse at just 8.3.  Audi

Cargo Space & Storage: 8/15

The A3 barely misses out having the smallest trunk in its competitive set, but the differences between premium compact luxury cars are small. The A3 offers 10.9 cubic-feet of space, compared to 10.7 in the physically larger CT4, 11.9 in the Mercedes-Benz CLA and a big 15.1 in BMW’s four-door 2 Series Gran Coupe. The rear-drive 2 Series two-door coupes get only 10 feet, while the A-Class has just 8.6.

The S3’s trunk is smaller, and at just 8.3 cubic-feet, at the bottom of the class. Fortunately, there are plenty of bins around the inside of the car to keep your smaller goods. Packing for a long trip with four people on board might be a challenge, however.

Style & Design: 9/10

The A3 has a handsome and muscular shape that communicates its sporty mission, especially in the up-powered S3 version. It appears more even and proportional than the outgoing model, which had a bit of a squinched-upness to its overall design. Interior materials are, in Audi tradition, quite top-notch, with novel etch metallic materials and interesting varnishes (or lack thereof) on the wood, and a pleasingly horizontal, retro-futuristic, space pod feel to the overall dash layout. It all feels very premium, especially at the price.

The A3’s interior is as handsome as its exterior and is loaded with pretty screens and useful in-car tech. A few too many functions are routed through those screens, but a fair number of physical controls thankfully remain.  Audi

Is the 2022 Audi A3 or S3 worth it? Which A3 is the Best Value? 

The Audi S3 offers an interesting choice. It offers quite a bit of performance for the money while feeling more resolved than the Mercedes, more refined than the Cadillac, and roomier than the BMWs. But the BMW M240i definitely out-performs it and feels more like a sports car. If a consumer is leaning toward a purely sporty choice, that may be a better pick. The S3’s big advantage in practicality makes it a strong contender for those who plan to carry passengers, as the BMW’s back seat is really cramped.

The A3 is more of a straightforward win in its category, combining all of the strengths of its competitors with few of their faults. It is delightful to drive, economical on fuel, commodious and comfortable on long trips (so long as occupants pack sparingly), and handsome and upscale feeling. Just like the Golf GTI with which it shares its underpinnings, it is a great all-around vehicle. 

Sticking with the mid-range Premium Plus model, and skipping the options, will yield the best result, acquiring advanced driver assistance systems and some infotainment niceties, without anything that gobsmacks of the unnecessary or pretentious. A Technology Package on the Premium Plus cars provides many of the tech upgrades from the Prestige car for $2,250, and could be a good consideration for those looking to split the cost differential between these two models while adding desirable safety and infotainment features.

How Much Does it Cost to Insure the Audi A3?

According to our research, a typical 30-year-old female driver with a clean record can expect an average annual premium of approximately $2,092 on an Audi A3, though this averages all 50 states. S3 buyers can expect to pay roughly $800 more. That compares to $2,335 for BMW’s 2 Series Gran Coupe (and $2,676 for its M235i version) and $2,547 for the two-door M240i. Mercedes’ A-Class and CLA weigh in at $2,126 and $2,449, with the AMG versions adding more cost. To get a more accurate picture of your potential insurance expenses, visit our car insurance calculator.