Volkswagen's Rabbit has adequate around-town power, but with an automatic transmission, it strains somewhat in highway-speed passing and merging. A test Rabbit's nonlinear throttle response resulted in abrupt off-the-line movement. Though suffering some low-speed turbo lag, the GTI is otherwise quick, delivering particularly impressive highway passing punch. The manual transmission shifts with exemplary precision, but some testers would have preferred shorter throws. Volkswagen's SMT shifts so quickly and smoothly in manual or automatic modes, that it becomes a tempting alternative for enthusiastic drivers. Fuel economy, as expected, is more frugal for a Rabbit than a GTI. A test automatic-transmission Rabbit averaged 24.7 to 25.3 mpg. Test GTIs have averaged 16.8 to 19.1 mpg with manual transmission, 23.6 mpg with SMT, both with slightly more highway travel versus city driving. Rabbits use regular-grade fuel, but the GTI demands premium. Rabbit ranks among the best-riding compacts, with a fine blend of absorbency and composure. The GTI's firm suspension irons out small imperfections well enough, but it thumps over sharp bumps, and scalloped surfaces can trigger abrupt vertical body motions. Both models handle adeptly. Rabbit is nimble and fun, with good control and natural-feeling steering, though some noseplow may be noted in fast, tight turns. With even quicker and more precise-feeling steering, the agile, grippy GTI is among the best-handling front-wheel-drive cars out there. Both deliver worry-free braking. Though it's not as quiet as a Jetta, the Rabbit's cabin is well-isolated from wind and road noise. However, the five-cylinder engine is gruff at idle and in rapid acceleration. The smooth, eager GTI engine is just moderately loud at full throttle, and subdued otherwise, though a test SMT model suffered some clatter at idle. Coarse pavement generates marked hum from the GTI's 17- and 18-inch tires. Gauges are unobstructed and clearly marked, but some testers have found their legibility hindered by blue/purple dashboard lighting. Most switchgear is handy and intuitive. Programming the available navigation system requires advance study, and it absorbs too many audio functions. High-quality interiors impress for many soft-touch surfaces, though a test Rabbit's dashboard creaked. Front occupants enjoy great leg room, helped by ultra-long seat tracks. Head room is generous even below the sunroof housing, and finding a comfortable driving position is aided by the standard tilt/telescoping steering wheel. Seats have easy manual height adjustment. The GTI's sport buckets help snug passengers in aggressive cornering. Wide rear roof pillars slightly hinder aft visibility. Rear passengers get good head room, plus adult-size leg room if front seats aren't pushed all the way back. Entry/exit demands dexterity in two-door models. Hatchback versatility translates to plenty of useful cargo room and a low load floor. Folding split rear seatbacks have been standard, but they don't lie flat.

Value for the Money
Rabbit and GTI offer many laudable standard safety features, and some uncommonly upscale conveniences, but options could lift their new-car sticker prices to the top of the class. High resale values, especially for the Rabbit, keep those prices high for secondhand-car buyers. Furthermore, Volkswagen scores subpar customer-satisfaction ratings for reliability and dealer service. Still, these are practical hatchbacks with near-premium compact build quality, and the lively GTI offers serious driving-enthusiast appeal.