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Performance can be pricey, especially when you’re looking toward Europe for your source of inspiration.

That’s the beauty of Volkswagen GTI and has been since it first roared onto the scene as a 1983 version of the humble Rabbit hatchback.

The latest GTI, which arrives as a mid-2006 model, packs 200 turbocharged horsepower and comes with all the modern-day bells, whistles and comfort gear we’ve come to expect. Yet for all that, the starting price is just under $22,000. Not cheap, but have you priced a Benz or a BMW lately?

GTI was the first hot compact labeled a “pocket rocket” by some smart aleck, a term that now encompasses an entire genre of amped up little cars, such as Subaru Impreza WRX, Mitsubishi Lancer Evolution, Honda Civic Si and Chevrolet Cobalt SS.

The VW’s advantage is the razor-sharp handling and solid construction that are hallmarks of sporty cars from Germany. Yet among the younger set, GTI is kind of old school; the high-revving models from Japan get most of the attention.

These sport compacts are the new generation’s version of the muscle cars that once rumbled out of Detroit. After all, Pontiac GTO was a tricked out LeMans, just as GTI is a tricked-out Golf.

For the new GTI, VW fashioned a suitably fierce front end that departs from the mild look of the past, with a gaping grille trimmed in red. Fat low-profile tires on huge rims complete the look.

There are compromises for the performance, notably a harsh ride. But on a fun-per-dollar scale, GTI rockets without emptying the pocket.

Vehicle type: Five-passenger, two-door coupe, front-wheel drive.

Engine: 2-liter, inline turbocharged four, 200 horsepower at 5,100 rpm, 207 pound-feet torque at 1,800 rpm.

Transmission: Six-speed direct-shift automatic.

Wheelbase: 101.5 inches.

Overall length: 165.8 inches.

Curb weight: 3,352 pounds.

EPA rating: 25 city, 31 highway.

Highs: Engine power, sharp handling, refined interior.

Lows: Sluggish downshifts, harsh ride, bland rear styling.