Audi A3

The wholly redesigned Audi A3 is part of a wave of compact luxury-branded models for buyers who have one eye on their budget and the other on gas prices. While it's tempting to get the basic Premium model, with the 1.8-liter engine for its relatively low price, you might be happier with the Premium Plus trim, which includes more of the features you expect in a luxury car and lets you get the Driver Assistance package, which includes blind-spot monitoring. For 2016, Audi added a standard backup camera, heated mirrors, and a USB port -- replacing the optional media interface and its unique Audi proprietary cable. Also, a front-wheel drive hatchback with a plug-in hybrid powertrain joined the line.

The A3 is an upscale little hatchback with a tasteful interior and, in most versions, a gutsy turbocharged 2.0-liter, four-cylinder engine. Closely related to the VW Golf and Jetta, the A3 hatchback resembles a small wagon. Front-wheel drive is standard; all-wheel drive is available as an option. We found the A3 quite nimble and quick in our tests, but the steering feels a little too light at low speeds. The automated manual S-tronic transmission works very well. A more powerful 3.2-liter V6 was optional on front-drive and standard with AWD models until 2009. Starting with 2010, the V6 went away and a 140-hp four-cylinder diesel joined the lineup. The 2013 models were the last year for this version of the little hatchback, as a new sedan replaced it for the 2015 model year.