The RS3 is back after a brief hiatus from the Canadian market, bringing along its blazing five-cylinder engine that now produces 394 horsepower. Being the only five-cylinder on sale in North America has a nice ring to it, but that’s not the only souvenir it has brought over. A new torque vectoring system aims to wash away any spectres of understeer, while a new interior design and steering wheel refresh the cabin. Bright new looks, with new colours and wheel designs, complete the 2025 visa papers. 

More compact than an inline-six but mounted transversely like a four-cylinder, Audi’s 2.5-litre turbocharged engine is unique not just in cylinder count and packaging, but also in its firing order (1-2-4-5-3). That results in an idling warble that sonically reverberates like an infantry war drum, giving us little excuse to test the new Sonos speaker system. Accelerate past 3,500 rpm, the valves open, and the full-bodied soundtrack begins its swift moonshot to the 7,000 rpm redline.

If you blindfolded us in the cramped back seat and told us we were in a low-revving, short-shifting V10-equipped Audi R8, we’d believe you. The RS3 even tries to mimic the sounds of opening throttle bodies by adding a bass-filled exhaust roar to accompany all throttle inputs. While not as inherently smooth and mechanically balanced as the 5.0-litre naturally aspirated V8 in the Lexus IS 500, it’s certainly fizzier, more characterful, and propels the RS3 nearly a second quicker from 0-100 km/h (3.8s vs. 4.6s). 

The most significant addition to the arsenal is the new RS Torque Splitter, a fully variable torque vectoring system with a pair of clutches that can send all power to either of the rear wheels. It’s essentially the Audi-fied version of the Golf R system. This allows for showboating drifts and leaves BMW M fanboys flabbergasted by an Audi smoking out its rears. It works well too and instills a sense of throttle-activated agility in low- and medium-speed corners. 

In the RS3’s default driving mode, it behaves predominantly like a front-engined hot hatch but with slightly more rear rotation than the FL5 Type R. It’s saying something when the front Bridgestone Potenza tires are wider than the rears (265/30R19 front, 245/35R19 rear). Activate RS mode via the red buttons on the wheel, and the steering becomes more direct and faithful to input. Build up speed, load it into a corner, and it remains remarkably stable and hooked up. Introduce some throttle lift or weight transfer, and the rear starts to engage, kicking out ever so slightly for quicker rotation. 

The fun factor is strong enough to justify the upgrade over an S3 or Golf R, both of which lack the RS3’s breadth of adjustability. Audi has programmed a great deal of engine braking in the RS modes, so it’s not exactly happy pottering about in traffic. The adaptive suspension keeps the ride firm but composed and entirely usable as a daily driver. We’d put it on par with the M2 and IS 500 in road comfort, but like the BMW and CLA 45 AMG, the 7-speed dual-clutch gearbox lurches if you’re hesitant on the pedals or don’t add enough throttle. The five-cylinder sounds anxious and uncomfortable in low RPMs, and constantly tempts you to unlock its restraint and let it rev free. There aren’t many gearboxes on the market that shift this violently and quickly, though, so its lack of tenderness is easily forgiven. 

This is the best looking RS3 to date, its hexagonal front grill punctuated by the new, bold and vibrant Progressive Red paint. The checkered flag headlights are neat, the vertical side fenders remind us of the RS6 Avant GT, and the black oval tailpipes give it the signature RS treatment. We’re not fond of the new RS3 logo, which has a separation between the rhombus and the letter R, making it too easy to confuse it with an S3. It also blends too easily with the red paint. What’s even more confusing is that Audi isn’t consistent with it, and still uses the old logo for the puddle lights, floor mats, steering wheel, and door sill. Not the key fob, though.

But it’s the new flat-top-bottom steering wheel that has us scratching our heads. Whoever decided to replace the four-ringed Audi badge with a flat sticker needs to reorient their internal compass. The thin rim is excellent to grasp, but we don’t see the appeal of the flat spokes like those on the BMW iX. Like the current-gen of Volkswagen Golfs, the replacement of the excellent physical switches and dials with haptic touch sensors infuriates us. There are ridges on the button borders to help you find where the next button lies, but not all of them have it, making it just as easy to lower the volume as it is to mute it. The sensors just aren’t very intuitive, resulting in a still smooth but slower and more troubled experience with the sublime 12.3-inch Virtual Cockpit system. 

This nitpicking is only because we know how good Audi switchgear can be—take a look at the physical switchgear in the RS6. Those buttons register with a certain deftness with a mild but significant squeak that indicates the input was successful. Ambiguity is greatly increased with the sensitive haptic sensors. And we’re not sure why Audi is trying to reinvent the wheel with a volume dial controlled by a touchpad, frustratingly forcing you to draw circles to adjust the volume.

The wheel-mounted paddle shifters engage well but are too small, and while there is a clever programmable shortcut button on the steering wheel, the functions it can be paired with are limited. Rather than meaningful uses like engaging the parking camera or disabling driver assistance functions, you can only choose from insubstantial features like switching the map theme from day to night, or changing from radio to media audio. 

The RS3 has brought back its iconic five-cylinder with some oversteering magic but during its vacation, the list of competitors under the $100,000 sports car bracket has grown, with the BMW M2, Lexus IS 500, Porsche 718 Cayman, Ford Mustang Dark Horse, and Mercedes-AMG CLA 45 S all eyeing the prize. What stands out is its scintillating, mini-V10 soundtrack, suitable road compliance for daily driving, and quattro AWD stability for the winter months. And while it may be marred by a few ergonomic foibles related to user interaction, its superior build quality, Virtual Cockpit interface, and gorgeous exterior visuals keep the haptic frustrations low and the overall desire high.

Specifications:

Model: 2025 Audi RS 3 Sedan
Paint Type: Progressive Red
Base Price: $78,250
Price as Tested: $81,690
Wheelbase(mm): 2,630
Length/Width/Height (mm): 4,534 / 1,851 / 1,392
Curb weight (kg): 1,645
Engine: 2.5-litre turbocharged four-cylinder
Horsepower: 394 hp
Torque: 369 lb-ft
Transmission: 7-speed dual-clutch automatic
Engine & Drive Configuration: Front engine, AWD
Observed Fuel Consumption (L/100km): 12.1
Tires: Bridgestone Potenza; 265/30 R19 (front), 245/35 R19 (rear)