Audi offers a range of smaller products around the world, but the A3 is the smallest and most inexpensive model for sale in the U.S. This conservatively styled compact has four doors and a nearly vertical rear hatchback reminiscent of a small wagon. The styling pays dividends in utility: the smaller A3 rivals the cargo capacity of many larger wagons. The front-wheel-drive A3 equipped with a turbocharged four-cylinder engine has a respectable EPA rating of 22 city/29 highway. Buyers looking for improved road manners and traction can opt for Quattro all-wheel-drive. The dual clutch six-speed automatic (optional on 2.0L models) with paddle shifters is an improvement over traditional automatic transmissions.

The A3 adds an optional 2.0L turbocharged diesel engine to the lineup. The 3.2L V6 model has been dropped.