Overview
Audi's A3 is its smallest and least expensive sedan. Compared to the bigger A6, the A3 suffers from a tight back seat and a smallish trunk. But all you're looking for is a compact sedan that's fun and a cut above more mainstream sedans like the Honda Civic, the A3 is well worth a look. It also comes standard with all-wheel drive, which is ideal for buyers living with seasonal inclement weather. Last year, Audi updated the A3 with new styling and small bump in power. We're not expecting much to change for the 2026 A3.
Edmunds spotlight: Fun and frugal
Under the hood of the A3 is a turbocharged 2.0-liter four-cylinder engine making 201 horsepower. While that's not a whole lot in the grand scheme of things, we've found in our testing that the A3 is actually peppy and quick in typical driving. It's a small car, and you don't need a bunch of power to have fun. And heck, if you do have a need for speed, there's always the related S3 or RS 3 versions that have more powerful engines and sportier handling. The A3 is efficient, which we like. Even with standard all-wheel drive, the A3 gets an EPA-estimated 28 mpg in combined city/highway driving.
Competitors to consider
Small luxury sedans aren't common. Top alternatives include the BMW 2 Series Gran Coupe and Mercedes-Benz CLA. The 2 Series was redesigned last year and the CLA should be getting a full update for 2026. Both are worth checking out. A more budget-focused option is the Mazda 3. It offers a stylish interior and is available with a powerful turbocharged engine and all-wheel drive.