Audi has announced its latest little hatchback, the five door A1. But rather than increase the price over the $29,990 two door A1 model, it’s slashed it completely thanks to a new tiny engine paired with manual transmission.

The upside is that you can now hop into an Audi for just $26,500 plus on roads, and it comes with five doors and some nice little luxuries. The downside is that you will be pushing the car up hill thanks to the tiny 1.2 litre turbocharged engine which pushes out just 63kW of power. That’s probably not a fair statement, as Audi has engineered the car to be able to work really well at lower rev ranges which gives the little vehicle that extra bit of kick.

Buy the base model and you will get mod cons such as Bluetooth audio streaming, automatic lights and wipers, 15-inch alloys and an Audi badge on the front of your car. That last bit should be a big draw card because even though this is cheap, the similar VW Polo, produced by the same people really, is under $20,000.

Fuel consumption is a very cool 5.1 litres to 100kph. Want some cheap German luxury and live in the city? This is your car.

Web: Audi