Interior room is not the reason why people buy the Rabbit. The passenger compartment, both up front and in the back, proves to be fairly tight; only average-size folks will feel at ease. What's more, cargo capacity is partly affected by the rear-end design; fortunately, the 60/40 split-folding rear seatbacks help a lot. Quality fabric covers the seats and finding a good driving position is easy with 6-way manual settings. While forward visibility is great, the outside mirrors do not offer a wide enough scope.

With a 177-horsepower, 2.5-liter, inline 5-cylinder engine, performance is solid.

A sporty rabbit
VWs in the mold of the Golf and Rabbit have always been fun to drive. This 2008 model is no exception. With a 177-horsepower, 2.5-liter, inline 5-cylinder engine, performance is solid. Accelerations might not be as blistering as the GTI's, but they're slightly faster than the segment's average. While engine output is adequate, fuel economy is somewhat disappointing; I was expecting to drop under 10 L/100 km but couldn't.

The other technical elements of the Rabbit are pure delight. The 5-speed manual transmission with hydraulic clutch is precise and quick to operate. The steering is sporty and responsive, offering great feedback from the road, which only adds to the driving excitement. Handling is just as superb, partly because of the long wheelbase and short overhangs. The brakes, however, could be more powerful. The Rabbit loves to be driven through twists and turns and, as a driver, I found it awfully rewarding. Clearly, Volkswagen engineers know how to hit the bull's eye when it comes to driving dynamics.

Competition
As a 5-door hatchback, the Rabbit has few direct competitors. In fact, only the Saturn Astra XE ($17,900) is similarly designed. Japanese sedans like the Honda Civic ($16,990) and Toyota Corolla ($18,930) always find a way to attract compact car buyers, but they don't offer the same feel as the Rabbit.

The steering is sporty and responsive, offering great feedback from the road, which only adds to the driving excitement.