It's a testament to how good the Audi A3 is that it was first launched back in 2003. It's still a smartly styled premium hatchback, although a Volkswagen Golf costs less and beats it in pretty much every area these days. It's still good to drive, most diesels are perky and efficient and it feels like a quality product throughout.

The Audi A3 is precise and good to drive. Standard models have a firm but comfortable ride with composed handling and decent grip levels. If you want a more involving experience, though, it's best you opt for a BMW 1 Series or Ford Focus. That said, with fine motorway manners and decent refinement, the A3 feels like a larger and more grown-up car than it actually is. As for engines, the range is very wide, but avoid the entry-level 1.6 petrol as it feels strained, and head straight for the diesels. We like the 138bhp 2.0 TDI the best as i's fast, smooth and economical. The range-topping S3 is rapid and grippy thanks to quattro four-wheel drive, although the 345bhp 2.5-litre five-cylinder RS3 is a rocketship.

Prices for the Audi A3 are higher than for an equivalent Volkswagen Golf, but you do get your money back on the used market as there is always strong demand. The cheapest to run is the 105bhp 1.6 TDI diesel which does 74mpg and is road tax exempt thanks to 99g/km CO2 emissions. However, we would go for the 138bhp 2.0 TDI which has more punch and still returns 64mpg while emitting 115g/km. At the top of the range, don't expect to get much more than 25mpg from the RS3. Servicing should be reasonable with packages offered by Audi dealers to incentivise business users.

The Audi A3 certainly ticks the style box, with a neat and simple shape, particularly in three-door form. The five-door Sportback has more space but doesn't look as smart. All models get standard alloy wheels, while the S line versions have larger wheels and a mild bodykit to make them stand out from the crowd.

Simply laid out, with good quality plastics and a fine driving position, the Audi A3 feels every inch the premium product when you step inside. There is good visibility too, although the thick C-pillars can make reversing a little tricky. As for equipment, base cars have electric windows, air-con and a CD stereo, SE adds a multifunction steering wheel, while Sport versions come with stiffened suspension, sports seats, an iPod dock and climate control. Further up the range, S line models add leather trim. The three-door A3 doesn't have much rear seat space - you would be lucky to get two average-sized adults in the back. However, its boot is a good size with 350 litres in standard mode and 1,080 litres with the rear seats folded flat.

There is no shortage of safety kit onboard the Audi A3. It gets standard traction and stability control along with driver, passenger, side and knee airbags. Only the four-star EuroNCAP crash test result tells you it is getting on a bit. As for reliability, the A3 is very well constructed and has been around long enough for Audi to have ironed out most problems, although early cars had a few recalls. Overall, we would expect the A3 to be very reliable.