Autoblog and Yahoo may earn commission from links in this article.MSRP: $38,200Use the table of contents to jump to a sectionOverviewThe 2025 Audi A3 subcompact luxury sedan proves that small doesn't have to mean less premium. Built on the same MQB Evo platform as the VW Golf GTI, the A3 gets a similar turbocharged 2.0-liter four-cylinder engine, but here with a 48-volt mild-hybrid system, and tuned for a more sedate 201 horsepower and 236 lb-ft. A seven-speed S tronic dual-clutch automatic and Quattro all-wheel drive are standard, so the little sub 3,500-pound A3 feels a bit like a warm hatch with a trunk, with sharp handling. Rivals in this sparsely populated niche include the BMW 2 Series Gran Coupe, the Mercedes-Benz CLA, and the Cadillac CT4.What's New for 2025The 2025 A3 gets its mid-cycle refresh, with Quattro AWD now standard across the board, and a small torque boost for the engine, from 221 to 236 lb-ft (power stays unchanged at 201 hp). On the outside, the grille, bumpers, rear diffuser, and LED head- and taillights are refreshed, while there are new alloy wheel designs as well. New paint colors include Arrow Gray, Progressive Red, District Green, and Arkona White.AdvertisementAdvertisementInside, more premium materials are used, with new fabric interior dash inlays, upgraded door, sill, footwell, and center console lighting, refinished door handles, and silver trim around the air vents. The center console has also been redesigned and has a new shifter lever and adjustable armrest. There's a newly standard 10.25-inch digital gauge cluster, and you can download apps like YouTube and Spotify directly to the car's MMI infotainment system via the Audi App Store. A premium Sonos audio system is also now available.ExteriorOn the outside, Audi's signature design language has been refined with a taller, frameless grille, bigger side air intakes, redesigned LED headlights, and new brow-like LED DRLs that make the car look lower and flatter. A more defined crease runs from the headlight to the taillight on each side, lending the profile some definition. The restyled rear bumper comes with a more pronounced diffuser panel, and the standard 17-inch 10-V-spoke alloy wheels look premium. The Black Optic package adds two-color 18-inch alloys and sports suspension.2026 Audi A3 in Arrow Gray Pearl EffectAudiView the 2 images of this gallery on the original articleInteriorThe driver-oriented cockpit is an even better blend of premium materials and sportiness than before, with soft-touch dashboard surfaces, classy metallic accents, and standard leather upholstery, elevating the cabin beyond the A3's price point. The blade-style chrome element that spans the entire dash makes the vents look even slimmer, and the 10.1-inch MMI touchscreen is angled toward the driver and provides haptic feedback when pressed. Physical controls are retained for the climate control, and an optional 15-speaker Sonos audio system substantially elevates the cabin. The second row is rather tight for adults, and the 8.3-cu-ft trunk is small, but the 40/20/40-split rear seat folds to expand this volume.AudiView the 2 images of this gallery on the original articlePrice Range and Best ValueThe 2025 Audi A3's price list starts at $38,200 for the Premium, which is also the best value, with standard Quattro AWD, heated front seats, leather upholstery, three-zone climate control, and a panoramic sunroof. You can add the $1,700 Convenience package for the advanced key and adaptive cruise control.TrimMSRPPremium quattro$38,200Premium Plus quattro$40,800Key SpecificationsEngine and PerformanceSpecificationA3 40 TFSI quattroEngine2.0L Turbo I4 48V Mild HybridHorsepower201 hpTorque236 lb-ftTransmission7-Speed S tronic Dual-Clutch AutoDrivetrainQuattro AWD0-60 mph6.0 secondsFuel Economy (EPA Estimated)CityHighwayCombined24 mpg34 mpg28 mpgDimensionsDimensionMeasurementLength177.3 inWidth (w/o mirrors)71.5 inHeight56.2 inWheelbase103.7 inCargo Volume8.3 cu-ftCurb Weight3,461 lbsSeating Capacity5WarrantyCoverageDurationBasic (Bumper-to-Bumper)4 years / 50,000 milesPowertrain4 years / 50,000 milesCorrosion Perforation12 years / unlimited milesRoadside Assistance4 years / unlimited milesPros and ConsPros: AdvertisementAdvertisementStandard quattro AWD with sharp handlingRefined interior with tactile switchgearExcellent fuel economy for a luxury AWD sedanCompetitive pricing in the premium compact segment.Cons: 201 hp feels modest for a sport-sedan positioning8.3 cu-ft trunk trails most competitorsRear legroom is tight for taller passengersNo Prestige trim limits top-end optionsVerdictThe refreshed Audi A3 makes for a very compelling entry point for Audi ownership, addressing shortcomings with improved material quality, upgraded infotainment, and standard Quattro AWD. The 201-hp engine may not put your pants on fire, but it's responsive and works well with the S tronic auto to deliver strong performance and excellent fuel economy. The driving experience is a particular highlight, with a sporting flair and premium refinement that defy its price tag. The $38K base trim is excellent value, with standard Quattro, leather, and panoramic sunroof, undercutting its 2 Series Gran Coupe and CLA rivals.AudiCompetitorsBMW 2 Series Gran CoupeMercedes-Benz CLACadillac CT4Acura IntegraAdvertisementAdvertisementThis story was originally published by Autoblog on Sep 4, 2026, where it first appeared in the Cars section. Add Autoblog as a Preferred Source by clicking here.