The Knowledge: The Audi S3 is a tuneable hyper-hatch that’s now as cheap as chips

Alex has been a road tester and motoring writer for more than 10 years, and has written on new, used and classic cars for What Car?, Autocar, The Daily Telegraph and PistonHeads, among many others.

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What if we told you you could get a car with the power and pace of a modern hot hatch, but for a fraction of the price? You'd be interested, we'll guess. What if we told you said hyper hatch could also offer you four-wheel drive, smart styling and an upmarket badge on its nose? If that sounds good to you, you’ll want to have another look at the first-generation Audi S3.

The 8L S3, as it’s known to its devotees, was met with a mixed reception when it hit the road in 1999. Some, excited by the promise of its 210hp 1.8-litre turbo engine, had hoped for a car that was a little raw, something with a more savage edge to it. After all, this was still a car the like of which the world hadn’t seen since the Lancia Delta Integrale and Ford Escort Cosworth; a bona fide, 200hp-plus, four-wheel-drive hot hatch.

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But that simply wasn’t Audi’s way of doing things. The S3 was – indeed, still is – well-mannered and smooth, delivering its power in a way that’s manageable and accessible, and backed up with a four-wheel drive system that prioritises faithful traction over tail-out thrills.

Away from the line, the S3’s traction is immense, but it still doesn’t quite grab you by the short’n’curlies and throw you down the road. As the speed builds, though, you become aware that the acceleration hasn’t tailed off. By 30mph, the S3 is only just getting into its stride, and at 60mph, it’s still pulling hard. Make no mistake: this is a quick car.

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"Yes, but it's not quite as quick as a modern hyper hatch, is it?" we hear you saying. Well, you're right. But bear with us, for where the S3’s appeal really lies is in its ability to be made even faster.

You see, whether you choose the earlier 210bhp engine or the 225hp version that arrived in 2001, the S3 is just a remap and a couple of bolt-on parts away from producing a solid, reliable 260-280hp – and that should give it more than enough pace to hold its own against the modern crop of hot hatches. Of course, the difference is that a tweaked S3 will set you back a fraction of the cost.

Why you should buy one now

It seems everyone’s forgotten about the first-gen S3, so prices are rather tempting. Less than £2,000 gets you a running project in need of a little TLC, while £3,000 gets you a high-mileage original car, or one that’s been lightly fettled. Up your budget to £4,000, and you should have your pick of historied examples with reasonable mileages; £5,000 and up gets you the best of the best.

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Compare these prices with those of the Golf R32 – a similarly powerful four-wheel-drive hatch from the same era – and the S3 suddenly starts to look quite the bargain, especially bearing in mind how easily you can boost its power.

What to look out for

The body is pretty strong, but you will want to check the undersides of the doors and the roof gutter areas, which can both develop a bit of tin worm.

S3 engines are usually robust, but rough running or a lumpy idle is a common problem, and can point to a number of issues, including worn breather and vacuum pipes, failed ignition coils, a dicky mass air flow meter, or a knackered diverter valve.

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Don’t be surprised if the suspension knocks – most S3s have a worn bush or two somewhere. Indeed, many enthusiasts reckon refreshing all of the bushes is a wise move if you want to keep your S3 driving as it should.

If you’re buying a modified example, check the work has been carried out sympathetically by those who know what they’re doing. Look for signs of corners being cut or cash being saved – budget tyres on a car with engine upgrades, for example.

Buy right, and modify well, however, and an S3 is a very cheap way to get a modern hot hatch driving experience for relatively little cash. Or keep it as it is, and enjoy one of the most usable fast hatchbacks from the turn of the millennium.