Volkswagen’s latest cars are lovely to drive but it’s true; many mechanics (and plenty of owners) are wary of the brand’s recent reputation for reliability. But if you’re buying a brand-new or nearly new example, then the factory warranty will be some peace of mind. The safest bet right now, is something Japanese or South Korean, and that includes the Hyundai you’re looking at as well as the equivalent offerings from Kia. Both these brands have enviable reputations for durability and both come with terrific factory warranties.

Volkswagen’s current high-tech turbocharged engines are very entertaining to drive as well as being frugal in all situations, but, in reality, any current model mid-sized SUV is more than capable of delivering you interstate in comfort and safety as well as offering low running costs. Bear in mind you may have to pay extra for the top-shelf model if you want all the latest safety and convenience technology.

Small all-wheel drive hatchbacks are rare in Australia, as only a comparatively tiny number of people live in the sort of environments that require the added traction and surety that AWD provides.

Also, most Australian consumers seeking AWD tend to go for smaller SUVs, since they are easier to get in and out of, offer a higher seating position and generally enjoy better resale values. On the flipside, SUVs cost more to buy and run, are not as stable at increased speeds due to their higher centre of gravity and are larger to manoeuvre in tighter parking spots than a small hatchback.

The Subaru Impreza remains the least expensive small AWD hatchback you can buy new, as well as the sole mainstream-branded model starting at under $30,000.

However, while the latest-generation Impreza launched in 2016 it's a huge improvement over previous iterations (with service intervals finally extended  to 12 months/12,500km), there are a few more compelling alternatives in small crossovers – that is, the in-between segment between small cars and SUVs; they boast a few extra centimetres of ground clearance without the bulk. Note only a few crossovers offer AWD as an option.

A recent stint in the new Impreza-derived XV 2.0L Hybrid revealed it to be a powerful and economical crossover with excellent handling and road-holding capabilities. The same applies to the Mazda3-based CX-30 AWD, the Toyota C-HR 1.2L-turbo AWD and Volkswagen T-Roc 140TSI 4Motion - though none are as frugal as the Subaru.

If you're not sold on the idea of an crossover AWD and prefer a small AWD hatchback, then your only other option is to stretch to premium European hatchbacks like the Mercedes-Benz A250 4Matic, BMW M135i xDrive, Audi A3 quattro and Volkswagen Golf R. But all generally cost upwards of $60,000 drive-away - and that's before some of the more desirable options fitted.

Finally, unless you are travelling hundreds of kilometres ever week, there is probably no benefit choosing diesel over petrol, as the former fuel is dirtier for the environment and not as quiet and refined as the latter. Additionally, diesels are falling out of favour with buyers due to their harmful emissions, and most companies are switching to petrol/electric hybrids as a solution. Again, this means the Subaru XV Hybrid AWD.

A long response we know, Jan, but we hope this helps.

You’ve layed out some challenging requirements here. You’d like a small SUV with a bit of ride comfort and clearly a bit of performance too, given your question about the i30 N.
I think you’ll find the ride harsh on the i30 N, especially since you found the ride on the Kona harsh already. Keep in mind the i30 N is a hot hatch and has the suspension to match.
I find the Subaru XV has very nice ride comfort for the small SUV segment, but I also feel that you will be disappointed with the performance from its 2.0-litre engine. You may also want to consider the new Hybrid Toyota C-HR. The Hybrid drive gives it a smidge of extra kick and it’s a fuel consumption hero, too.
For a better blend of performance and ride, really only the Volkswagen T-Roc and Skoda Karoq are going to excel in the small SUV crowd. In terms of ownership both now have five year warranties, and you can (and should) pre-package five years of servicing on top at a discount.