The idea of fitting relatively big engines into small cars is not a new one. Hot hatches were based on this very ethos and enjoyed years of success as a result. It was not until the early nineties that VW moved the game on further by squeezing a narrow angle V6 under the bonnet of a Golf, the VR6, in the process creating a hot hatch with a difference. Pace and fun coupled with GT qualities such as refinement and comfort, not something seen previously in cars in this class.

VW's VR6 evolved into the later-generation 4MOTION and then, as market trends dictated, a harder core version at the top of the Golf food chain, the R32. The latest Golf has moved the game on again. In terms of driver enjoyment and all-round capability the new Golf GTi returns the original hot hatch back to the pinnacle of hot hatch-dom. For the new Golf R32 to significantly improve on this it will have to be something very special, particularly given the price premium.

The R32 is differentiated from the rest of the Golf range by large multi-spoked alloys, a large chrome insert on the nose (mimicking the Passat), subtly flared arches and two central exhaust pipes. Aficionados will spot it from a distance, but many other won't give it a second glance. It's a good-looking car enjoying an appropriate amount of discretion although the chrome snout is a little loud and won't be to everyone's liking. The blue paint work on our test car suited it down to the ground though.

Behind the chrome sits the familiar 3.2-litre V6 that has received few revisions since its previous appearance. Tweaks to exhaust and inlet have boosted power up to 247bhp (from 237bhp in the previous R32), with a broad spread of torque that peaks at 236lb.ft at a relatively low 2800rpm. Revvy and willing, the engine is deceptively strong due to its linear delivery, but lacks a little top end excitement. In today's marketplace the V6 needs a bit more power to more clearly differentiate itself from the £20k hot hatch rabble.

On the move the V6 provides strong performance, but not scintillating. The six second 0-60mph time is as indicative of the traction afforded by the four-wheel drive as it is of outright punch. The tonne comes up in 15 seconds or so and the R32 will run onto a 155mph maximum, but it never feels that fast. Blame the linear delivery for that, and the bulk that is the penalty for the big engine and four-wheel drive driveline. The R32 weighs in at a not insignificant 1550kg, a clear 200kg more than the GTi.

The new R32 engine is much less tetchy than the old one though; throttle response has been damped slightly, although not at the expense of drivability, indeed it is smoother and easier to drive now. The engine is also very vocal, intentionally so judging by the rasp from the exhaust, and it may prove to be too noisy for some. Performance family cars should make a great noise when you work them hard but should also be polite and restrained when needs be. The R32 was excessively loud for me in the low engine speed range, turning heads in normal town driving and intruding on the cabin ambience unnecessarily. When pushing on it is lovely though, sonorous as a nice V6 should be and applies a lashing of charisma hard to find in most hot hatches.

Somewhat 'bling' pedals are well-spaced and the driving position is spot on, leaving the driver comfortable and well positioned to enjoy the experience. The interior is much the same as the GTi's other than the square-bottomed wheel and seats being embossed with 'R32' rather than 'GTi', obviously. The dials are backlit in white rather than red and the needles are an attractive electric blue; small but appreciable differences to mark the R32 apart. The steering wheel, being the same lovely item found in the GTi, is great to hold with indentations for fingers just where you'd want them. Pointing the Golf's nose down our favourite roads revealed several things very quickly.

The R32's steering is nicely weighted, but lacks any true feel. The Haldex four-wheel drive can be used with judicious use of the throttle to assist in the quelling of understeer and provides an extra helping of security and pace. It is also evident in many corners, as you can feel the power being redistributed; there is a definite feeling of being pushed rather than pulled in many instances. In wet weather the Golf R32 possesses a level of traction that lifts it beyond the ability of most of its front-wheel drive only rivals. Body control is excellent, particularly given the added bulk over the GTi, and the R32 flowed over ruts and bumps that had the M Sport BMW 130i bucking like a colt. The brakes are strong in the Golf too, but there are hints that they would fade on track or under the most extreme examination on a challenging road.

Easy to drive thanks to well weighted controls, the R32 also has a nice positive gearshift, somewhat longer than the GTi's but still good to use. There is a small amount of shunt through the four-wheel drive every now and then, but only in the first two gears and it can be eliminated by very careful and precise inputs to throttle and clutch. Six well-spaced ratios ensure sprinting ability is balanced with relaxed cruising although nothing can prevent the weight and power absorption of the transmission taking their toll on fuel consumption. High teens was the best we could do in a week's worth of driving.

Overall, the R32 has the arsenal to easily see off rivals such as the BMW 130i, but ironically finds itself undermined by another, supposedly lesser, Golf, the GTi. Unless the status of owning the top of the range model is of the utmost importance I'd be tempted to save the £5,000 price difference and stay with the Golf GTi. It can do at least 95% as much as the R32, but at 80% of the cost and would deliver the same depth of enjoyment of driving experience with a lower purchase price, running costs, and if previous trends repeat, less depreciation.

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Volkswagen Golf UK range overview

S level: VW Golf S 3-door 1.4-litre 5-speed manual at £11,995 to VW Golf S FSI 5-door 1.6-litre 6-speed auto at £15,720.

SE level: VW Golf SE FSI 3-door 1.6-litre 6-speed manual at £14,875 to VW Golf SE TDI 5-door 1.9-litre 6-speed auto DSG at £17,750.

Sport level: VW Golf Sport FSI 3-door 1.6-litre 6-speed manual at £15,145 to VW Golf Sport TDI 5-door 1.9-litre 6-speed auto DSG at £17,875.

GT level: VW Golf GT FSI 3-door 2-litre 6-speed manual at £17,300 (5-door review) to VW Golf GT TDI 5-door 2-litre 6-speed auto DSG at £19,425.

- VW Golf GTi 3-door 6-speed manual: £20,360
- VW Golf GTi 5-door 6-speed manual: £20,860
- VW Golf GTi 3-door 6-speed DSG: £21,690
- VW Golf GTi 5-door 6-speed DSG: £22,190
- VW Golf R32 3-door 6-speed manual: £24,240
- VW Golf R32 5-door 6-speed manual: £24,740
- VW Golf R32 3-door 6-speed DSG: £25,570
- VW Golf R32 5-door 6-speed DSG: £26,070