The Audi A3 is becoming a compelling pick in the second-hand marketplace for shoppers on tighter budgets. This German superstar of the compact luxury era joined the ‘less is more’ party that saw competitor compact sedans come and go, while enduring a mass exodus of shoppers from compact cars to compact SUVs. With both sedan and hatchback body styles available, the A3 sat somewhere between the small sedan and small SUV universe, and standard turbocharged power combined with widespread quattro AWD availability raised an enthusiast eyebrow or two.If you’re after something cheap, upscale, and sporty, you’re in the right place. Below, we’ll get you up to speed on the Audi A3 as a second-hand buy, look at key pros and cons to consider, and see just how much of Audi’s much-loved AWD compact you can get on a $20,000 budget today. Where Was The Audi A3 In 2016? AudiGather round, it’s story time. The Audi A3 nameplate has existed globally since 1996 for the three-door and 1999 for the five-door models, though Audi didn’t start selling the A3 in the US until 2006, and only then as a five-door Sportback. That first-generation A3 was on dealer lots from 2006 to 2013. A second-generation A3 came next, covering model years 2015 to 2020 inclusive, with a mid-cycle update for 2017.For this generation, the A3 launched as a sedan, with Cabriolet and Sportback e-tron variations added later. For the 2016 model year (the second year of the A3’s second generation), you could still get a 1.8-liter turbo four with front-wheel drive, or the 2-liter turbo four with quattro AWD. Incidentally, this was the last year you’d find the Audi A3 available with the brand’s ‘Clean Diesel’ engine.Elsewhere in 2016, the A3 got a list of upgrades applied to drive further value. All models now included a backup camera, parking system, aluminum interior accent package, heated mirrors, and heated washer nozzles on the standard equipment list. In summary, 2016 was a pretty good year to buy an Audi A3. Delivering on the luxury aspect of things here is Audi's usual array of high-quality materials, fixtures, and fittings. Expect leather-wrapped steering wheels, heated this and that, plus premium plastics scattered throughout.In 2017, the mid-cycle update landed. Product enhancements included the Audi virtual cockpit and updated MMI touch hardware inside, alongside an expanded suite of driver assistance systems. The refreshed exterior featured new fascias with revised grilles and lighting. Now, only the 2-liter turbo engine, VW’s famous EA888, was offered under the hood.AudiNote that the Audi A3 made an excellent platform upon which to modify and tune things to your preferences. This is a blessing and a curse, depending on where you’re sitting. A totally stock A3 can be modified to taste by those who partake, though the average shopper is best to stick to a unit that’s as factory-stock as possible to avoid potential headaches and surprises. A Few Comforts And Cautions For The Second-Hand A3 Shopper AudiJust how reliable is the 10-year-old Audi A3 you’re considering? That depends almost entirely on how well it was cared for and maintained by its previous owner(s). Finding a model that’s non-modified with a clean title and proof of ongoing and consistent servicing throughout its entire life, with no gaps, is a great start.Even better? Check around for locally-owned units that are highly familiar to the local Audi dealership, and may have all servicing and maintenance records under one single roof. At 10 years of age, the long-term health of the machine you’re considering has much less to do with its manufacturer and almost everything to do with regular servicing and care.From that basis, a few comforts (and cautions). On one hand, the A3 is powered by one of the most mass-produced turbo engines in the industry, the EA888. This particular engine has evolved for generations and overcome earlier teething issues to become a solid and dependable performer in more modern applications. Trouble-free? No, but relatively easy to diagnose and repair should the need arise.AudiYou’ll want to feed it premium gas for best results, however. Do so, and it’ll return punchy performance with liquid smoothness and snappy, on-demand torque that should easily incite grins. A glance at Vehicle Dependability Study (VDS) data from J.D. Power in 2019 (which deals with 2016 model year vehicles), shows Audi was a brand on the ball at the time. Its 124 PP100 score put them in 8th place overall, well ahead of the industry average when it came to dependability that year.Remember the big tech upgrade that hit the A3 for the 2017 model year? We can see it rippling through the VDS results, too. Scanning data from the 2020 JD Power VDS (which deals with 2017 model year vehicles), we can see Audi’s score indicates more problems, climbing to 136 PP100, now almost halfway down the list and behind the industry average. This data considers the brand as a whole and isn’t A3 specific, but speaks to a broader trend of diminishing dependability as cars started to become more and more like smartphones on wheels.Audi If you prefer a tech-minimal experience at the wheel, take this as your sign to stick with a pre-update 2016 model year unit instead of the refreshed and digitized 2017 model year upgrade.Further JD Power data specific to the Audi A3 helps add some confidence. In 2016, the A3 had a ‘Great’ rating (83/100) for Quality and Reliability, as well as a ‘Great’ rating (84/100) for the driving experience. In 2017, alongside that tech refresh, the A3 only earned an ‘Average’ score. That’s further reinforcement that 2016 is probably the model year you want, if you’re looking a decade or so out. The Nuts, Bolts, And Dollars Of The Used Audi A3 AudiAccording to Repairpal.com data, the average annual maintenance cost of an A3 is $744, with most repairs averaging between $670 and $818. If you’re looking for a decade-old A3, many owners advise having a pre-purchase diagnostic scan performed as an absolute minimum, as well as a check for oil leaks from the oil filter housing, oil pan, and upper timing cover.Audi Water pump and thermostat housings are other not-uncommon sources of leaks, so be on the lookout. Ignoring a coolant leak and the associated warnings that come with it can cost you an engine and stop your trip dead in its tracks. Some owners also choose to pre-emptively change out timing chain tensioners as they approach high mileage, to help mitigate potential issues with timing chain flex reported by some drivers. Strict adherence to the 40,000-mile DSG fluid and filter change intervals is strongly advised for long-term transmission health, and a healthy battery can fend off a variety of electronic gremlins, too.AudiFinally, you’ll want to be triple sure the sunroof on the model you’re considering isn’t suffering from blocked drainage tubes, which could cause water to overflow the system and leak into the car’s ceiling, down its a-pillars, and into the footwell carpeting. Carefully inspect the interior for signs of water staining, mold, or dampness, which could indicate trouble. What You'll Pay Today Audi If you’re thinking a quattro-equipped, turbocharged compact luxury sedan might just be the ticket to inject your daily commute with some much-needed fun, then the Audi A3 is definitely up for the task. The cheapest 2016 or 2017 model year units on the second-hand market today can be had for around $7,000, usually with front-wheel drive and at least 150,000 miles on the odometer.On the other side of the spectrum, you'll find the priciest A3s of this vintage to come in right around the $20,000 mark, often with 45,000 miles or less. Ten years out, differences between 2016 and 2017 model year pricing are minimal, so you’re free to pick between the high-value, lower-tech 2016 model year car, or the more modern, digitized experience of the updated 2017 machine.If you’ve got $20,000 to spend, you can do nicely on a sub-60,000-mile unit with plenty of funds left over to factor in plenty of future miles and maintenance too.Sources: Audi, VWVortex, JD Power, Repairpal