Sector: Lower Medium Price: £34,725 Fuel: 40.9mpg CO2: 159g/km

Although the Audi S3 Saloon is based on a car which is aimed primarily at markets outside Western Europe, there’s a unique appeal to this third bodystyle which the hatchbacks can’t match.

This is the car which takes the S3 into a long, iconic history of high performance Audi saloon cars and, while it’s a smaller entrant than its predecessors, it benefits from the same combination of ultra-modern styling, huge power and Quattro four-wheel drive as its nearest predecessors.

View this as a downsizing option from an S4 Saloon, and the S3 offers most of the space drivers could need, while shedding £6,000 in up-front cost, while improvements in fuel economy and CO2 emissions put a void between the two cars. All in a package which looks far from downmarket compared to its ageing sibling.

The boot adds £1,980 to the S3 Sportback with which this shares its wheelbase, but its nearest rivals still make this look like a bargain. The Mercedes-Benz CLA 45 AMG comes in at £42,270, and the BMW M235i Coupe is slightly cheaper at £34,260 on the road, but does without the Audi's rear doors and four-wheel drive. Though the S3 is the least powerful, all three will get to 62mph in less than five seconds.

That’s not to say it’s short of power, though. The 2.0-litre turbocharged petrol engine produces 296bhp and, more importantly, delivers its 280lb.ft peak torque between 1,800rpm and 5,500rpm. This is the part you’ll notice most on the road, with explosive in-gear acceleration helping it to feel even faster than its 4.9-second sprint to 62mph would imply. 

Quattro four-wheel drive is used to keep that power usable on the road and, with the weight benefits of the Volkswagen Group’s new platform, it’s not been blunted by sheer mass. The S3 Saloon weighs 1,450kg with the S-Tronic gearbox, or 95kg lighter than the M235i and 135kg less than a CLA 45 AMG, combining to give incredible road holding without rolling into corners or slowing its ability to change direction.

Better still, there’s no penalty in terms of running costs. The four-cylinder engine and lightweight platform, combined with a standard-issue Drive Select system, mean it’s possible to engage a full selection of comfort and economy-tuned settings for the drivetrain, steering and suspension. In turn, fuel economy can settle at just under 40mpg on the motorway with a little willpower, where its softest settings make long distances as relaxed as any other A3.

Or you can turn it up a notch. Dynamic mode allows the dual-clutch gearbox to hang onto each of its seven gears for a little longer, sharpens the responses from the steering and throttle, firms the suspension and opens a flap in the exhaust to add an angry soundtrack to spirited drives. The howl of the M235i’s straight-six engine may be more appealing, but the S3 Saloon’s low burr is an aggressive one, and even the stiffest suspension setting isn't backbreaking on crater-filled British roads.

But it's the design which seduces the most. The S3’s bodykit, quad exhausts and large wheels suit the three-box saloon silhouette even better than the hatch, and the A3’s stylish interior is upgraded to include full or half-leather sports seats and unique dials with a built-in LED turbo gauge where the rest of the range has a water temperature readout. Most executive-class must-haves are included as standard but, like its closest rivals, navigation is optional. It’s a cheap option, at £495, but a frustrating omission on a car at this price bracket.

The vast majority of UK A3s are hatchbacks, and of those most are in some form of Sport-styled trim level. It makes the S3 Saloon an exclusive, stylish choice which – for the performance and pedigree on offer – is also very good value for money.

Verdict:

There’s only a few hundred pounds between this and the mechanically similar Golf R, which really emphasises the value on offer with the Audi. Premium styling, impeccable build quality and a drivetrain which offers an attractive combination of performance and parsimony make this a thoroughly desirable part of the range.