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A lot of that is about offering powerful, turbocharged engines and cool styling, but what the GTI does 鈥� has always done 鈥� is provide granular steering feel and chassis response without compromising the ride and comfort of the passengers. It鈥檚 what turns a mass-market compact hatchback into a proper driver鈥檚 tool.

For 2025, the GTI has received an update that鈥檚 enough to have VW calling it 鈥済eneration 8.5.鈥� Available in two trims 鈥� GTI ($36,495) and GTI Autobahn ($40,495) 鈥� and with only a sprinkling of add-ons to choose from, the GTI has received a new front bumper design, new headlights and an illuminated VW emblem. There are also new wheel designs and exterior colours and it all combines to tighten up the styling and add just a little bit of flare.

Inside, there鈥檚 an all-new infotainment system with an enlarged touch display as well as optional new seats borrowed from the European Clubsport model. They are more supportive than previous and come finished in a material called 鈥淎rtVelour,鈥� which means a suedelike material with honeycomb inserts. They are more supportive, but they can鈥檛 be fitted with a cooling system. Luckily, the standard seats still get the tartan finish many GTI enthusiasts know and love, and there鈥檚 a leather option, which is heated and cooled. The climate control system鈥檚 temperature controls are touch-sensitive, but they are now illuminated.

Is all of this enough to earn a 鈥済en. 8.5鈥� designation? I鈥檓 not so sure, but considering that the cabin is well-appointed and spacious, especially when it comes to both front and rear headroom, I鈥檓 not sure it matters.

Now, the infotainment system is a big upgrade. More than just having a larger display (from 11 inches on the old car to 12.9 here), it also gets better, brighter graphics, a more responsive touchscreen and is more intuitive to operate, thanks to smarter menu design and bigger buttons. The way it sticks up over the dash, instead of sitting snuggly within, does bely the fact that this is more of a refresh than a full-on change; the new display is taken from larger VWs and their taller dashes.

All of that plays second fiddle to how the GTI drives. It鈥檚 performance on the track is one thing, but a compact hatch like this really needs to shine on the open road. And shine it does; the immediate steering that helps place the car so well on the track makes it easier to thread through bustling city streets and to park. The ride, which can be improved if you select the Autobahn mode that gets adaptive dampers, does well to smooth out the bumps and cracks our urban centres throw at us as we drive. The larger 19-inch wheels (18s are standard) don鈥檛 compromise the ride as much I feared.

Then there鈥檚 the power. It matches last year鈥檚 output of 241 horsepower and 273 pounds-feet of torque, fed to the front wheels through a seven-speed automatic 鈥� and only a seven-speed automatic, as 2024 was the last year you could get a manual transmission in either the GTI or its more powerful Golf R sibling. That’s a shame. As quick-shifting as the gearbox is 鈥� it gets paddles for upshifts and downshifts 鈥� there is just something about the granularity of a manual gearbox.

It is quick, banging through the gears at a fever pitch (especially if you鈥檝e selected the Sport drive mode) and transmitting the power to the road with gumption and little torque steer. That means a much stronger pull out of corners and an involved drive.

The best part? Fun as it is, you don鈥檛 need a race track to enjoy it and you don鈥檛 need to break the bank to get one. At a hair over 36 grand, it costs about the same as another legend in the affordable performance world: the Mazda MX-5. With the GTI, there鈥檚 just more bang for your buck in power, interior features and space.