For a smaller car and what I use as a commuter, the Audi A3 provides an excellent combination of fun and functionality. I average over 30 mpg in the city, and on a recent road trip across the desert, I got 40 mpg one way and 38 mpg on the return trip. More importantly though, is that it isn't an econo car. The turbo-charged engine and dual-clutch transmission gives this car plenty of power. The stiff suspension and low-profile tires (if that's the kind of thing you like) lets you throw the car around with plenty of confidence. It's a great-looking car that drives well.

Audi's A3 is a compelling entry-level luxury car, but it lacks some expected features for its price, and the interior, although well-made, feels austere.