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A new Volkswagen Golf carries more weight of expectation than most small cars.

The last model was a unanimous choice as Drive's Car of the Year in 2009, due in no small part to its ingenious supercharged and turbocharged engine, which managed to balance exceptional performance with miserly fuel use.

This next-generation Golf is lighter, smarter and more efficient than its predecessor. But does that translate into a better car? 

Our first drive of the new Golf started off in the entry-level petrol 90TSI Comfortline, which starts at $24,990 plus on-road costs (add $2500 for the dual-clutch automatic gearbox)

The turbocharged four-cylinder’s 90kW power output seems low on paper, but with 200Nm of torque on tap it feels anything but sluggish. The power comes on without fuss, and the engine is refined and flexible. And with claimed fuel use of 5.4 litres per 100km for the auto, it’s 15 per cent more efficient than the previous generation 90TSI model despite boasting the same power outputs.

The seven-speed dual-clutch automatic still has that somewhat unnerving hesitation at low speeds, but once you’re up to cruising speed it sorts through the gears brilliantly, with quick, smooth changes that are barely perceptible under light to medium throttle.

All Golfs now have stop-start technology, where the engine cuts off if you’re sitting at a standstill – and it’s one of the smoother examples of the technology we’ve tested.

Every Golf is now lighter – up to 65 kilograms, depending on the model – which means it feels more agile through the bends, and that handling improvement is boosted by the fact that all models get the same XDL “electronic diff” seen in the GTI hot-hatch, which essentially uses the brakes to minimise wheel-spin and improve drive out of corners.

It does feel more grippy than the previous model, and sits flat through corners at higher speeds. The steering is accurate and well-weighted, and the nose tucks into corners more convincingly than the previous version.

The ride is well sorted, not soft but not too hard, either. There was, however, some road noise over coarse chip roads, and the occasional noisy thump from the rear suspension.

Inside everything looks neater, smoother and prettier, and there has been some thought put in to functional bits like the spot under the boot floor for the parcel shelf, in case you need to fold the seats flat to store longer items. There’s also a space-saver spare wheel hidden in there.

It feels more spacious inside, and the back seat is more roomy, with enough legroom for taller adults front and rear, and the boot is a touch bigger at 380 litres (was 350L).

The storage is good in the front and rear, but our test car had a glaring fit and finish problem in the centre console, which had badly mismatched gaps – an unusual thing for the clinical German brand.

Standard equipment for the 90TSI Comfortline includes 16-inch alloys, front and rear parking sensors, a reversing camera, an auto-dimming rear-view mirror and extra storage pockets and cup-holders in the back seat over the base model 90TSI (which also has steel wheels and less interior storage).

We also tested the top-end 103TSI Highline petrol model (from $31,990), which has 103kW and 250Nm – down from 118kW of the previous "twin-charger" four-cylinder. The new car is 0.4 seconds slower to 100km/h, but compensates by being roughly 16 per cent more fuel efficient.

Compared with the base model 90TSI, it's a step up in performance, but we’d suggest most buyers may not need the extra grunt.

Aside from the performance boost, the more expensive model gets more equipment, including stylish 17-inch wheels. The only drawback is the wheels make the ride less comfortable at low speeds and create more road noise on rough surfaces.

The 110TDI diesel model (from $34,490) produces 7kW more than the previous version, but an identical 320Nm of torque.

That pulling power offers a wallop from low in the rev-range, but the accelerator pedal feels slightly dull – no doubt a move to quell driver’s intentions of pressing too hard and blowing out the fuel use. The claim is a miserly 4.9L/100km.

This model also had the 17-inch wheels with the same, slightly rigid ride quality and increased noise in the cabin.

All in all it drives better and feels nicer than the previous Golf. Add to that the peace of mind of fixed price servicing, and the Golf is a small car that buyers can’t afford to leave off their shopping list.

Search for new Volkswagen Golf models here.