Attractive in general – when compared to others such as the Pontiac Vibe, Toyota Matrix, Mazda 3, Subaru WRX, and Saab 9-2X – the 2006 Audi A3 has well-balanced, pleasing dimensions that carry more of a luxury look and heritage. Its trapezoidal nose, a conspicuous snout that can be found on most contemporary Audis, distinguishes the A3 as a member of the family. Brand recognition is important in this premium compact class, and there is no mistaking the A3 for anything but an Audi.

At the rear, the A3’s roofline noticeably tapers, reducing the glass-to-body ratio. Compared with the 2005.5 A4 Avant wagon, the A3 measures 11.9 inches shorter in length (168.7 in.), although the wheelbase is only 2.8 inches tighter (101.5 in.). These better balanced proportions help create the A3’s sporty stance, for which Audi was aiming. Even compared with those of other premium compacts, the A3's body is more tightly wrapped around the wheels. Other notable exterior features include a high crease along the sides above the door handles, a front hood line that includes a center bulge for the grille, and dual exhaust tips.

If the 2006 Audi A3 falls short in terms of aesthetic appeal, it’s on the inside. Audi attempted to replicate the interior look and quality of the TT roadster, combining premium soft-touch materials with sporty accents such as aluminum-ringed air vents and rotary knobs for the climate control. But the A3’s interior, especially with the aluminum trim, still looks cheap. The black trim provides a more upscale appearance, but despite the attractive look and feel of the steering wheel, stalks, and gauges, the overall interior atmosphere doesn’t match the A3’s stablemates.

In terms of comfort, we found the seatback supportive, but the seat bottom was long and, without the power seat controls that come with the optional Premium Package, people of shorter stature might find it difficult to get comfortable.

Inside, the cabin has good visibility and more room than you would expect from its outside appearance. The A3’s front headroom is 38.1 inches, which is the same as the headroom in the S40/V50 and the Mazda 3, but a tad less than the head clearance the Saab 9-2X and the Mini Cooper S. In terms of front legroom, the A3 at 41.2 inches is close to the Mini, but you are less able to stretch than in the Volvos and the Saab. The rear seat of the Audi has headroom of 36.9 inches and legroom of 34.8 inches, as compared to the Volvo S40 (37.2/34.4); Volvo V50 (38.1/34.4); the Mini Cooper S (37.6/31.3); and the Saab 9-2X (37.3/33.7).

The 2006 Audi A3 runs middle of the pack in cargo space. Maximum luggage capacity with the rear seats up is 19.5 cubic feet, as compared to cargo stowage with the seats up in the Mini Cooper S (5.3), Acura RSX (16) and Mazda 3 (17). Volvo’s V50 (27.4) and Saab’s 9-2X (27.9) have greater room with the rear seats raised. With the rear seats lowered, the A3 boasts 55.6 cu.-ft. of cargo carrying ability as compared to the the Mazda 3’s 31.2. Both the Volvo V50 (62.9) and the Saab 9-2X (61.6) report higher numbers for maximum cargo capacity.