2025 Audi S3 Review

As a car enthusiast, there are some points in life when you find yourself pining after a certain vehicle. It’s not entirely different to a schoolyard crush. One of the strongest memories of this, growing up, was an article in Wheels or MOTOR magazine – a review of the first-ever Audi S3 in 1999, accompanied by stunning black and white photography.

I must have read that story dozens of times as a kid. My favourite car around that time was the Subaru Impreza WRX, the first-generation sedan, with hallowed stories about it being the ultimate getaway car against cops in their antiquated Aussie V8s.

But then Audi, a German luxury car brand, followed a similar recipe: A potent four-cylinder turbocharged engine, with a six-speed manual and all-wheel drive. Except this was in a three-door hatchback with curves like I’d never seen. The alloy pedals and blue suede Recaro seats just made it cooler.

Fast-forward a generation and, through my work at the time, I had the opportunity to get to know the all-new, second-generation S3. This time, it had a 2.0-litre turbocharged engine – from the same family as the new, celebrated Golf GTI – but with all-wheel drive and the choice of DSG or manual transmissions.

In the city, point-to-point, it was hard to imagine anything quicker than the Audi S3. It was built well, looked great, and it was fast.

Suffice to say, the new-generation Audi S3 has a lot to live up to. Both on paper, and based on my own history with the car.

And on paper, it looks good. The S3 is closely related to the Volkswagen Golf R, and is powered by a 2.0-litre turbocharged four-cylinder engine with a healthy 245kW and 420Nm – driving all four wheels through a seven-speed dual-clutch transmission. No manual is available.

We’ll get to styling in a bit, but looks-wise, the updated S3 isn’t a quantum leap over the car it replaces.

No, the story of the day is underneath the car. New mechanical and electronic gadgetry that gets the Audi through corners quicker than it ever has before – some of which has been borrowed from the high-performance Audi RS3.

So, can it live up to its past?

How much does the Audi S3 cost?


The 2025 Audi S3 is priced from $78,800 before on-road costs and options, which is both expensive for a small car, and a relative bargain given the performance it delivers.

Curiously, the S3 Sportback – which is both more practical and subjectively cooler – is cheaper than the sedan, which is available from $81,800 before on-road costs.

The S3 challenges the Mercedes-AMG A35, the BMW M135, and arguably other small, premium hot hatches like the Mini Cooper S JCW – all of which are priced between $54,990 and $89,700 before on-roads.

But the biggest challenger to the S3 comes from within the family: the new Mk8.5 Volkswagen Golf R, which is the source of the new trick diffs under the S3. And the VW is a good chunk of money less than the Audi.

The S3 comes standard with a 12.3-inch digital instrument cluster, a 10.1-inch infotainment screen with wireless Apple CarPlay and Android Auto, a 680-watt Sonos sound system with 15 speakers, three-way climate control, heated front seats, LED Matrix headlights, and 19-inch alloy wheels.

For your cash, you get an okay amount of kit. But really what you’re paying for is the brains and bums from the Audi Sport team who sit in the S3 and fine-tune it for several years before it arrives on the dealer lot. The development that makes the S3 what it is is the reason for the pricing – and once you experience it, you’ll realise it was worth every cent.

2025 Audi S3 Pricing:

• S3 Sportback – $78,800
• S3 Sedan – $81,800

Note: Prices exclude on-road costs and are subject to change.

Asleep or Sleeper?

The new S3 is positively Audi. You’ll be forgiven for perhaps finding it hard to distinguish between the S3 sedan and the S4 sedan. Or any other Audi, for that matter.

Despite some fairly subtle stylistic changes, the S3 adds a bit of sportiness over the boring-person A3, without ever really being overly loud or aggressive.

The front spoiler is pretty cool and aggressive, but the rest of it just leaves me a little cold – with the only exception being the slightly boxy guards at the wheel arches. An all-too subtle nod to the Ur Quattro, if that means anything to you.

I will say, as well as being more practical, I do think the Sportback just straight-up looks better than the sedan. Less like a hatchback and more like a small wagon, and we all know longroofs are cooler than a three-box sedan.

Audi’s design team has been killing it in recent years, with some really fantastic designs. Unfortunately, the S3 just comes across as if it were phoned in. Sure, it hits all the dot points it needs to, but it seems to just blend into traffic.

The counterpoint is that it makes the S3 a bit more of a sleeper. A small executive car with a look that belies its performance. For some people, that could be a big tick, a real advantage. All the horsepower, none of the attention.

You can make up your own mind.

Forward Slash

The interior is a harder argument. There are elements I really like, and others I’m not such a fan of – like the vents sticking out of the dash cluster like a pair of wings.

Steering wheel aside, Audi’s designers don’t seem to know anything about round shapes. Everything in the cabin is sharp, slicey, straight lines. Like they watched an old ‘70s karate movie and assumed the characters were doing an interpretive dance for interior design.

The funny thing is the steering wheel, in this Audi performance car, is a proper circular unit – unlike most SUVs these days that offer sporty flat-bottomed steering wheels despite having the performance of a jar of mayonnaise.

Though I appreciated the button controls for the dual-zone climate control – particularly in humid Far North Queensland – the rest of the interface, controlled through the infotainment screen, wasn’t immediately intuitive. Audi still haven’t quite gotten this part right, prioritising style over usability.

There’s a 12.3-inch digital instrument cluster, which can be changed to a more race-car like experience with a line-bar tachometer and gauges displaying real-time power and torque usage, as well as integrated sat-nav maps.

While plenty of people have made fun of my George Costanza-esque wallet, that aside, I found the door pockets too small to be of any real use, and found myself trying to fish out my wallet more than once. My sunglasses case didn’t come close to fitting.

What Audi does do well, almost better than anyone else, is the bucket seats. The diamond-stitching on the big, hugging leather sports seats really elevates the cabin space, making it feel more like the premium, quality German performance car its pricetag suggests. Just like the first-generation Recaros, except without the blue suede.

As a bigger guy, I appreciated the comfortable yet supportive seats, and it took very little time to find my preferred seating and steering positions. This will become more important later.

You Must Be This Small To Ride

If you need to carry adults often, then the S3 probably isn’t the car to pick. The sedan I found to be pretty cramped in the back, with limited headroom and legroom. Kids might be fine, but the back doors weren’t Ben-shaped. While it’d be the fastest Uber in town, it’s more suitable for the occasional short ferry than for any long-term road trips with a car full of buddies from the footy team.

That’s the sedan. The Sportsback has the same 2630mm wheelbase, so there’s no more legroom for those in the back, but there is a bit more headroom and slightly larger door apertures – again, making it the better choice for anyone who plans to, y’know, use the car.

All Legs, No Booty

The Audi S3 is in the small-car category, so it isn’t the one to buy if your job is transporting livestock. It’s a fast point-to-point city car, with enough space to take the kids to school in, and a boot big enough for a few suitcases.

Officially, Audi says the S3 has 325 litres of boot space, with the Sportback offering up to 1145L with the second row of seats folded down – making it, once again, the front-runner if you ever find yourself shopping for anything more than hot dogs at Ikea.

Round The Bend

Now, this is where the Audi S3 eats. For the first time in forever, Audi’s engineers have ditched the Haldex system for a new all-wheel drivetrain. And with it comes a trick rear differential.

What does that all mean? Well, in the past, the S3 – like many Audi and Volkswagen models – used a Haldex system, which everyone referred to as being all-wheel drive. Except it should have been known, more accurately, as on-demand all-wheel drive. The engine would drive the front wheels, and when they began to lose traction, power would be sent to the rear wheels.

While new S3 uses a similar set-up, it borrows a new torque-vectoring rear differential from the RS3 and Golf R, and – when used in concert with the car’s Dynamic Plus driving mode – can transfer up to 50 per cent of the engine’s torque to either (or both) rear tyres. It’s far quicker and more impressive than the tired Haldex systems of the past, with something like 6 per cent of torque always being transferred to the rear wheels at a minimum.

With an extra 17kW/20Nm over the previous model, the car’s 245kW/420Nm provides solid performance, without making the car feel scary at wide-open throttle – or compromising anything during slow city traffic driving. Power delivery is strong and the transmission’s seven speeds help ensure the engine’s always in its power band.

Audi claims the S3 can do away with the 0-100km/h sprint in just 4.7 second – which feels accurate.

The optional $9900 titanium exhaust – which Audi is avoiding telling everyone is from Akrapovic, one of the best – is perfect, to the point where it shouldn’t be an option at all. The bimodal system vanishes away when the car is in comfort mode, but reminds you it’s there when the car’s drive mode is switched to Dynamic – without ever being in-your-face.

Switch the car to Dynamic Plus mode, and it’s better again, providing a satisfying soundtrack while allowing the driver to better use the engine to their advantage. Trust me on this, tick the box for the titanium exhaust (or call your local Akrapovic dealer), then crack the window.

I say that, knowing it will push the price of the car to well over $90,000 – which puts it up against another set of very quick, very good cars. (But do it anyway.) Just don't look up the cost of the titanium Akrapovic exhaust on the Golf R.

Goodbye, Everyone.

The Audi S3 doesn’t come across like it has Jekyll and Hyde personalities, despite covering a broad range of uses competently. Put simply, it’s a city car that can go very quickly – in pretty much any scenario thrown at it.

But while the straight-line speed is as good as you’d ever want, it’s the winding back road where the S3 really shines. Hairpins, long sweepers, and everything in between, the small turbocharged car is peak fun when its pulling sideways Gs.

Audi’s reps encouraged us to test out the car’s Dynamic Plus mode, which noticeably sharpens up the car’s inputs and makes it respond well to the driver – without ever being twitchy.

In the hills above Cairns, the winding road offered several left-right-left corners in quick succession, threatening to upset the S3. But the car changed direction quickly and on demand. Left-right-left, go. The positive front-end providing confidence to the driver – even with the 200-metre drop next to the road. This car is all about lateral traction, and there was no sign of the car ever breaking a sweat, even at speeds that would make a magistrate blush. Allegedly.

Start to jostle the car and there’s a linear progression of understeer, a warning of sorts, yet the new back-end allows the Audi to be driven more like a rear-wheel-drive car – a first for the S3. When the front starts to push, just point the steering wheel vaguely to the exit of the corner, and feed on the throttle.

The mechanical and electronic gibbons help push the car through with just a hint of oversteer on exit – adding to the fun of it all. Which is why it matters that the S3 has such great seats and the ability to find a great driving position. You’ll need to be holding on.

Push the car even further, closer to its limit, there’s some initial understeer on tip-in – but again, it can be easily neutralised using the throttle, with the all-wheel-drive grip slingshotting the vehicle through the corner.

It’s a great party trick, because, to be completely frank, it elevates even the most average of drivers to hero status. Go driving in the mountains with that friend who owns a supercar, and enjoy listening to their excuses when they eventually catch up to you.

The improved handling comes by way of tweaks to both front and rear axles, stiffer front wishbone bearings, and increased negative camber for the front wheels.

The new brakes on the updated S3 are also good, offering predictable and confidence-inspiring response. Having said that, brake fluid and pads for higher temperatures should be on the list if you plan to visit the track.

Then there’s the transmission, which is probably the best dual-clutch this side of a Porsche – responding quickly and adding to the overall enjoyment of driving the S3 at speed. The changes were crisp and smooth, with a ratio always there at the ready for the opportunistic overtake.

The steering response is still more Audi than Porsche, in that it’s relatively light and provides limited feedback from the road and tyres – but it’s an improvement over previous generations, regardless, and is decently quick and progressive.

One thing that didn’t register with me immediately was just how good the S3’s suspension set-up is. Because I didn’t notice it at all. It was only after the fact that I realised it was near enough to being perfect, because I didn’t make any notes about it being too hard or jittery, or too soft or wallowy. The chassis was right in the sweet spot for a performance-oriented daily driver. It was comfortable, responsive, and should be studied by Audi’s competitors.

Good Enough

The Audi S3 comes with, frankly, the bare minimum of safety features for what is an $80K car. Which isn’t to say it’s unsafe, it just suggests the money’s gone into the performance side of things.

It’s also worth noting that the S3 remains unrated by ANCAP – the country’s independent crash-test body. However, the A3 on which it’s based still has a five-star safety rating from when it was tested back in 2020.

Having said all that, the S3 comes with six airbags, front and rear parking sensors, reversing camera, autonomous parking, radar cruise control with stop-and-go, lane-keep assist, lane-centring assist, blind-spot monitoring, forward AEB with intersection assist, and reverse cross-traffic alert – though no rear Autonomous Emergency Braking, which is a bit poor.

As Easy As 1, 2, S3

As with all Audi models, the S3 comes with a five-year/unlimited-kilometre warranty as standard, along with five years of roadside assistance.

Service intervals are every 15,000km or 12 months – whichever comes first – with the ability to purchase a five-year service plan for $2890, which breaks down to $578 per visit. Of course, this doesn’t include consumables like brake pads or tyres. Both of which you might be replacing if you’re enjoying the S3 to its potential.

For $3250, you can upgrade to the Audi Advantage Package, which adds two more services, another two years to the car’s warranty, and an extra two years of roadside assistance.

What do you get with the Audi S3?

2025 Audi S3:

• Matrix LED headlights
• LED daytime running lights
• LED tail-lights
• Keyless entry and start
• Nappa leather with Dinamica suede
• Diamond contrast stitching
• Electric heated front sports seats
• Sports pedals
• Multifunction sports steering wheel
• Three-zone climate control
• 12.3-inch digital instrument cluster
• 10.1-inch infotainment screen
• Voice recognition
• 3D map display
• Wireless/wired Apple CarPlay and Android Auto
• Wireless smartphone charging
• Ambient lighting
• Illuminated aluminium sill plates
• 19-inch alloy wheels
• Space-saver spare wheel
• Red brake calipers
• Adaptive damper control
• Drive mode select
• Body-kit
• Quad exhaust tips
• Matrix LED headlights
• Exterior mirror housings in matte aluminium
• Heated power folding side mirrors
• Auto-dimming rear-view mirror
• Ambient lighting
• Sonos 680W premium sound system with 15 speakers
• Autonomous parking assist
• Radar cruise control with stop & go
• Six airbags
• 360-degree cameras (post April production)
• Rear-view camera
• Front and rear parking sensors
• Front AEB with pedestrian and cyclist detection
• Lane-centring assist
• Lane-keep assist
• Blind-spot monitoring
• Rear cross-traffic assist

Options:

• Power hand-free tailgate — $660
• Akrapovic titanium sports exhaust — $7615
• Launch Edition Package —  $1115
  
  • 19-inch black alloy wheels
  • Carbon-fibre trims
  • Black quad tailpipes
  • Black exterior trims
  • Black badging
  • S puddle lighting
  • Rear privacy tint

Final thoughts on the Audi S3

The styling of the new S3 didn’t leave me as dreamy-eyed as the first-generation, but its on-road capability impressed beyond expectations. 

There were a handful of things I didn’t like – or didn’t understand – about the Audi S3, whether it were styling choices, the second-row space, or the interface with the infotainment.

Frankly, none of that really matters at the end of the day. If you need more space, get a bigger car. If you’re after a piece of art, keep driving past your local dealership and head to a gallery. You’ll get used to the buttons and infotainment after a week.

This car isn’t perfect, but it also doesn’t seem to care. It’s not trying to be good at everything. What it does try to do well is offer performance for those who desire it.

Making cars go fast in a straight line isn’t all that hard nowadays, thanks to electric motors. In fact, the Audi S3 is only 0.2 of a second quicker to 100km/h than the GWM Haval H6GT PHEV I reviewed recently – a mid-size SUV costing around $25,000 less than the Audi. 

But what the S3 is able to achieve on a winding road is much harder to quantify than a 0-100km/h sprint time, and it does it remarkably well. Astonishing well.

Whether the Audi is worth the extra money over the closely-related Volkswagen Golf R, I’m less convinced. But for, perhaps, the more mature buyer, the Audi delivers a tonne of performance while allowing you to park next to your colleagues’ BMWs and Mercs without losing face.

The fact is, if you want a car small enough for the city, a car that can be driven in traffic or on the highway, a car that’s a bit premium, and a car that can deliver bags of fun either on the track or on backroads over the weekend, then the Audi S3 is worthy of your consideration.