Audi RS3 News

The small car segment, especially on the premium and luxury end of the spectrum, has been very tumultuous over the last few years with hatchback and sedan sales plummeting, while SUV sales have climbed astronomically.In order to combat this, as part of our ongoing 2026 CarsGuide Car of the Year awards, we’ve combined small premium passenger cars and SUVs into this segment.It’s worth noting that each shortlisted small premium car mentioned below is inclusive of the entire line-up, though its entry price must be under $80,000 before on-road costs for this particular category.The following is a rundown of our top 10 sub-$80K small cars in alphabetical order and why they made the cut. Our top three, including the category winner, will be announced on February 6.Note Mercedes-Benz's current A-Class, CLA and GLA were ineligible as they were unavailable for review.While many brands are fleeing this segment of the car market, this German small hatch and sedan is still offered in Australia in a wide range of trim levels and variants. Beyond the normal A3 variants, there’s the sporty S3 and the fire-breathing RS3.It notably made this shortlist due to the latter which is still offered with an iconic five-cylinder engine. However, we do wish it made just a bit more noise like the older models did.Beyond this, CarsGuide reviewers praised the A3 line-up for its capable and engaging driving dynamics, as well as its luxuriously equipped and premium-presenting interior.While the A3 hatch and sedan may be newer, the Audi Q3 small SUV has been soldiering on for a couple of years now without any major updates.The current model is reaching the end of its lifecycle and is set to be replaced by a new-generation model during 2026.Despite this, CarsGuide reviewers liked how the Q3’s exterior design is ageing, even in the polarising Sportback body style, plus the on-road manners are both elegant and fun.The new-generation version of the BMW 1 Series hatchback launched locally late in 2024, offering everything from everyday commuter trims to the M135 xDrive hot hatch.CarsGuide reviewers were impressed with its driving dynamics and outright performance, though fuel efficiency took a hit as a result.Additionally we liked the new and modern front-row layout, however the exterior design, especially at the front, likely isn’t for everyone.The X1 small SUV is the most popular BMW in Australia currently and for good reason.It launched locally in new-generation guise in 2022 to popular fanfare, then the all-electric iX1 variants joined the line-up in 2023, cementing its status as a benchmark small SUV.CarsGuide reviewers praised X1/iX1’s on-road manners, as well as the modern and high-tech exterior and interior designs. However, common European quibbles like tyre roar and suspension bumps can intrude into the cabin.The X2 is a swoopy ‘coupe’ SUV counterpart to the X1 small SUV and still notably offers both petrol and electric (iX2) powertrain options.While its exterior design is polarising and not for everyone, CarsGuide reviewers appreciated how polished the drivetrains feel from behind the wheel. The X2/iX2 is also affordable when compared to premium rivals from the likes of Mercedes-Benz and Volvo.The few dislikes were centred around the X2 M35i xDrive’s firm ride due to its large (and thankfully optional) 21-inch alloy wheels, as well as the slight reduction in boot capacity over the X1/iX1.This spicy Spanish small crossover SUV is the clear front-runner for Cupra in Australia. Arriving in 2022, the Formentor is offered in a range of variants from warm to hot, plus even a plug-in hybrid (PHEV) offering.CarsGuide reviewers appreciated the lifted hatchback looks and the smile-inducing driving dynamics, however some found the multimedia system to be a little finicky and the ride a little too far on the firm side.An oft-forgotten entrant in the small SUV segment, this quirky French electric SUV impresses with its sleek design, maximised interior space and reactive driving feel.There is currently only one trim level of the Megane E-Tech offered in Australia, the Techno EV60, and it’s limited by its 7.4kW maximum AC charging rate, plus the lack of features like connected services that are available overseas.A huge step away from the iconic Fortwo of the early ‘00s and ‘10s, the Smart #3 is the brand’s largest car in Australia to date.With unique looks and a premium cabin feel, the #3 impresses though the driver-assist features can be a little overbearing and the panoramic glass sunroof has no sunshade.More sore points are the average warranty coverage of five years or 150,000km, as well as the hefty servicing costs for an electric vehicle.While a number of these shortlisted vehicles are high-tech or electrified offerings, the Subaru WRX stands out as a purist sports car.Still featuring a turbocharged four-cylinder boxer engine and a manual transmission in certain trim levels, the WRX is offered in sedan and wagon body styles.CarsGuide reviewers praised the WRX’s dynamism, practicality and even value when compared to rivals with similar amounts of power. However, the WRX Sportswagon only comes with a continuously variable transmission (CVT) and doesn’t look as sporty as the standard WRX sedan.This vibrant and quirky Volvo electric SUV stands out on the road thanks to its stunning exterior design with boxy proportions.The interior also stands out, but sometimes not in the best of ways. CarsGuide reviewers found too many of the key features are tucked into menus on the central touchscreen, plus the lack of a proper instrument cluster was grating.

It’s been expected for a while, but now it’s official.

Following the updated Audi A3 and the introduction of its AllStreet variant, the sharper and faster Audi S3 Sportback hatch and sedan have also been tweaked to make it… even sharper and faster.

These days, the upper echelon of the hot hatch segment is a veritable arms race between just two hi-po superpowers: Mercedes-AMG and Audi Sport. Since Mercedes made its first attempt to muscle in on the Audi RS3’s turf back in 2013 with the first-generation A45 AMG, it’s been a tit-for-tat exchange between the mad scientists in Affalterbach and Neckarsulm as they both compete to make the fastest f

Audi has increased pricing for its new-generation RS3 performance sedan and hatch, but it's still more affordable than its key rival.Pricing for the new RS3 in five-door Sportback hatch guise kicks off at $91,400 before on-road costs and opting for the fo

The humble hot hatch is no longer humble.The modern hot hatch is a very different beast to the original Mini Cooper S or Volkswagen Golf GTI, with the latest creations from Audi Sport and Mercedes-AMG packing sports car levels of power, viscous accelerati

Audi Sport has officially revealed the third-generation RS3, with the new hyper hatch and sedan set to rocket into Australian showrooms in the first half of next year with a five-cylinder engine, quattro all-wheel drive with a tail-happy drift mode, and aggro styling inside and out

Audi Sport has fired a warning shot at archrival Mercedes-AMG, confirming that its third-generation RS3 will not only offer a drift mode for the first time, but will crucially also be quicker and faster than the competing A45 S

Don’t make the mistake of calling the second-generation A45 a hot hatch, as Mercedes-AMG will be quick to point out it’s not one

Audi Australia is preparing a torrent of new RS and less-potent S models to launch this year that is expected to give a massive boost to its sportscar sales.No less than 12 full-fat Audi Sport models - RS-badged vehicles and the flagship R8 - will either