The Audi S3 remains an entertaining compact sedan that gives you a taste of Audi luxury. There’s good power under the hood, and the exterior and interior styles are strong without going over the top. But the real news here is the addition of a certain upgrade that arrives thanks to the S3’s more aggressive RS3 sibling: a rear torque splitter.

For 2025, all trims of the S3 arrive with a bit of a mechanical party trick out back. The rear torque splitter allows for as much as 100% of the available rear torque to be sent to the left or right wheel as needed. This enables a far more entertaining and nimble driving experience. It also allows the car to keep itself in line when you’re motoring in less-than-ideal weather conditions. It’s exactly what a car like the S3 needs to bring the fun to a new level.

I had the chance to spend a few hours with the new Audi S3 and I came away impressed. The starting price sits under $50k, it’s nice inside for what’s an entry-level luxury machine, and it’s closer to RS3-level fun than ever before. The RS3 still kicks its butt, but the jump from A3 to S3 is now wider.

The S3 features a 2.0-liter turbocharged four-cylinder engine that’s good for 328 hp. Audi quotes a 0-60 mph time of just 4.4 seconds. When you put the car into Dynamic Plus mode, the traction control in Sport, and get after it, the car responds with great steering feel and a surprising level of dynamic entertainment. It changes directions nicely, and the car is a true joy to pilot down a twisting ribbon of road.

I’d easily recommend the Audi S3 over a similarly priced Volkswagen Golf R. However, I’d start to struggle a bit if we add the GR Corolla and Acura Integra Type S into the mix. The Audi is far nicer on the inside than the Corolla and offers more power and AWD than the Integra, of course. It’s fun that we have enough sporty cars, though, with which to make arguments for and against a good amount of cars.