MG MG3 vs Volkswagen Golf

What's the difference?

A number of established small cars are becoming more expensive and less popular. The Toyota Yaris, Mazda2 and Suzuki Swift were once the go-to first car, but now start at around $25,000.

This repositioning was great for MG and its sub-$20,000 MG3, which has spent much of the last few years as Australia's most popular light car. It’s hard to deny a low price will open many wallets.

But now in its new generation, the MG3 is thousands of dollars more expensive than before, starting in the mid-$20K range and headed even further up with a new hybrid drivetrain option. We jump in the base petrol Excite to find out if the value is still there for this British-branded, Chinese-built hatchback.

Eight generations over more than half a century qualifies the Volkswagen Golf as an automotive icon, standing on the shoulders of its original beetle-shaped ancestor.

It remains one of the world’s favourite cars and this 110TSI Life version is the entry-point to the local model line-up, the latest ‘8.5’ version of which arrived here just over 12 months ago.

It sits in a hotly contested small-car category, appealing to those with a preference for a conventional hatch and pure internal-combustion power.

In an automotive world now dominated by increasingly electrified SUVs, we spent a week behind the wheel to see how it shapes up as an urban specialist with occasional open road ability.