The 2023 Audi S3 blends refined performance, an upscale interior, and the latest technology into an exceptionally well-rounded and agile subcompact luxury sedan. The S3 was completely redesigned for the 2022 model year, and it largely carries over into 2023 with some additionally available tech and safety features. It provides 8.3 cubic feet of cargo space, which is a bit smaller than the 10.9 cubic feet offered by the A3 sedan upon which the S3 is based.

Trims for the 2023 Audi S3 are Premium, Premium Plus, and Prestige. Standard features on the Premium include 18-inch alloy wheels, a panoramic sunroof, eight-way power-adjustable front seats, three-zone climate control, and a fully digital 10.3-inch instrument panel, which Audi calls the “Virtual Cockpit.” The S3 also comes standard with a 10.1-inch central touchscreen that supports wireless Apple CarPlay and Android Auto.

Moving up to the Premium Plus trim adds hands-free remote keyless entry, memory setting for the driver’s seat, adaptive cruise control with lane guidance, and wireless device charging. The latter two features are also available on the Premium trim as either part of the Convenience package (wireless device charging) or a standalone option (adaptive cruise control).

The range-topping Prestige trim adds a head-up display, Matrix-design LED headlights, navigation, and a Bang & Olufsen premium sound system.

The S3 is powered by a turbocharged 2.0-liter four-cylinder engine. It makes 306 horsepower and 295 pound-feet of torque. Power is routed through a seven-speed dual-clutch automatic transmission to Audi’s Quattro all-wheel drive. The transmission has a manual mode with steering-wheel-mounted paddle shifters. In addition to Auto, Comfort, Dynamic (sport), and Individual (custom) drive modes, the S3 features a Drift Mode. This unique feature pushes more power to the outer wheels in a turn, helping the nimble performance sedan get a bit sideways when desired. The sport suspension helps the S3 carve corners with precision.

EPA estimates for fuel economy are 23 mpg city, 32 highway, and 26 combined. The S3 requires premium fuel.

Standard driver-assistance features include forward-collision warning, automatic emergency braking, and lane-departure warning. Available driver -ssistance features include blind-spot monitoring, rear cross-traffic alert, traffic-sign recognition, and self-park assist.

Base MSRP for the 2023 Audi S3 is $45,900 for the Premium trim. The Premium Plus starts at $48,800, and the range-topping Prestige starts at $52,800. The Audi S3 is backed by a four-year/50,000-mile warranty.