You never forget your first time. For me, it was a Golf VR6 - a car my teenage brain saw as just a way of getting to and from school. That was, until the morning we were running late. The sober-looking hatch shed its skin as the narrow-angle VR6 sang to the redline on our way past slower traffic. Until then, it was just a hatch with an extra badge in the grille and on the boot - I had no idea what it really was. But that day, it proved itself.

A quarter of a century on, I find myself at the wheel of a similar proposition. A machine with room for my camera gear, child, and partner which had no issues in completing the mundane drives of the working week, but the ability to attack a country road quicker than the Ferraris and Porsches that adorned my bedroom wall as a youngster.

If the Golf VR6 could be credited with creating the premium hot hatch, the original 8L-series S3 took it mainstream. When launched in 1999, magazines struggled to find competitors, often pitching it against other turbocharged AWD performance cars such as the Subaru Impreza Turbo 2000. Nowadays, the marketplace has changed, and a desirable badge, drive to all four corners, and a turbo four is the most popular hot hatch configuration. As Bob Dylan said: The Times They Are A-Changin'.

With competition fiercer than ever, Audi has chosen to equip the facelifted fourth generation car with flagship RS 3 hardware to improve its performance. The EA888 2.0-litre engine produces 328bhp from 5,600-6,500rpm, and 310lb-ft (420Nm) of torque between 2,100 and 5,500rpm. It matches the Volkswagen Golf R on the spec sheet, but what the red S3 has in its arsenal is a torque splitter from the RS 3. So does it work? 

Unlike a mechanical LSD, the torque splitter utilises electronically controlled clutches on each drive shaft to independently and dynamically adjust the amount of torque sent to each rear wheel, allowing for active torque vectoring.

It's clever stuff, allowing me to sprint from 0-60mph in 4.7 seconds, and attack a cold B-road with confidence, even as the 19” Bridgestone Potenza tyres gained temperature. As degrees and cornering speeds increase, the multi-link suspension remains firmly in touch with the road and surefooted in its Dynamic setting. This allows the S3 to corner as flat as two-week old roadkill, and tells me that the chassis can be pressed and leaned on through hairpins and sweeping bends alike.

The handling isn’t the only thing that’s composed; the acceleration is too. Only the briefest of interruptions from the 7-speed twin-clutch auto box get in the way of the linear acceleration. New software means Audi Sport has halved gearchange times in an already rapid-shifting ‘box, and as quickly as the car switches cogs, the revs rise to match owing to the strong torque-led pull. But I can’t help but feel the evergreen EA888 is holding back; reaching the red line doesn’t reward me as much as I expected it to, but I suppose some of the drama needs to be held in reserve for the RS 3.

Most of my time in the hills of Hertfordshire was spent with the car in its Dynamic Plus driving mode - the sharpest setting for the S3’s drivetrain, engine, and steering, but the hexagonal wheel ahead of me felt like it needed a Dynamic Plus Plus mode to give any real feedback through it; frustratingly, switching to the sharpest drive setting does require a lot more submenu-surfing than the rotary dial shortcut of the new A35.

While I’m thankful for its lightweight operation when parking, it forces the driver to get a feel for the car’s movements through their buttocks rather than their hands. It’s a car that has to be trusted from the outset, rather than communicated from the get-go. Have faith the tyres, torque splitter, and suspension will offer the grip, and the car will return some mightily impressive speed and stability around all types of corners.

While the overall mechanical setup could do with some tweaks, there’s no need to alter the driving position, or the layout of the cabin. The two-piece wingback seats are comfortable, supportive, and good looking in equal measure, and the multi-layered display setup makes for a welcome change from the single widescreen infotainment systems that are filling the market.

The drivers’ display is customisable with a modernised Ur quattro-style option being a lovely touch. It’s able to show real-time engine output, G-force, navigation, and much more, while the main infotainment display is angled towards the driver. This makes operating the touchscreen system easier when on the move, as it’s mounted lower than what’s found in the AMG A 35 or BMW M135.

Overall, the S3 has the best interior among its closest rivals, but the cabin is let down by the plastic gearshift paddles. These are a tactile disappointment, and a world away from the cold, chunky metal paddles of this car’s arch nemesis from Affalterbach. However, for everyday use, the cabin is a pleasant place to be owing to this car being a top-spec Vorsprung model. As well as adding black trim to the exterior, the equipment level brings a Sonos sound system, glass sunroof, head-up display, electrically adjustable front seats, and much more.

Do these options add much to the driving experience? When chasing the sunrise along a B-road, it’s only the head-up display that earns its place, yet it’s the things that are superfluous on a track or mountain pass that make a hot hatch so appealing. Not every drive takes place on a deserted road at the weekend. When trudging through traffic, you’ll be glad to have the adaptive cruise control, physical air conditioning controls, and space for the family and shopping. You may also be glad that the styling is almost identical to the S-Line A3, save for the four pipes at the rear.

I guess this is by design, there is a gentleman within this guise that adorns the S badge, much like Clark Kent before exposing his red S and going full Superman. To the everyday man, it’s hard to tell it apart from the A3 that has the S treatment. That's until you see the quad pipes tattooed with the Akrapovic logo at the back.

My Progressive Red test car is equipped with the £4,000 exhaust system; the bigger tailpipes are always hard to ignore, and I get their appeal. Don’t think these are an ASBO option however. Staying true to its ‘understated’ stance, the system only allows a deep and natural sounding burble. No outlandish and fabricated pops, crackles, or bangs are to be heard, and the pipework is a touch quieter than I'd expected. I wouldn't count it as an essential option.

Switching urban roads for undulating ones, I can’t help but draw comparisons between the S3, and the AMG A 35 that I ran as my company car for 14,000 miles. The Audi has the on-paper advantage, but in the real world, their straight-line performance is near identical - driver reaction times and skill would matter more - so the difference in character is found at each corner.

Both cars have a common setup of 2.0-litre turbocharged engines, all-wheel drive, and around 300bhp on tap. The A 35 certainly “feels” better through its only flat bottomed steering wheel, but the way that the S3 uses its torque splitter is the defining feature. The only thing more sure-footed than this car is an elephant that’s stepped in glue.

Overall, the S3 remains true to itself. This facelifted fourth-generation car is everything the S3 always has been, and always should be. It’s better to drive than ever, and more refined than before. One thing I would recommend is not to get too carried away with the options list - as tested, this car clocks in just £4,000 shy of the entry point to RS 3 ownership.

While it’s true more extreme hyper hatches are available from Audi and Mercedes-AMG, it’s impossible to ignore that the S3 is a damn good hatch to begin with. It makes a strong case for itself in everyday driving, but it makes complete sense when the tarmac is deserted, and the going gets hot. Or you’re running late dropping the kids off to school.