The A3 combines European driving refinement with a host of standard features and a practical hatchback layout.

The luxury market is getting smaller. No, the actual sales volume is not decreasing. Rather, the size of entry-level vehicles is becoming physically smaller. This allows luxury automakers to target new shoppers who would previously have waited until they entered the next tax bracket to enter a showroom.

A prime example of this new subcompact luxury segment is the 2006 Audi A3. Previously exclusive to Europe, the A3 joins Audi’s North American lineup, providing a high-quality interior and refined, athletic driving characteristics but with the practicality of a compact hatchback layout. The A3 shares a platform with the Volkswagen Golf hatchback and seats five passengers.