VW says "Raumwunder" is the German word for small on the outside but big on the inside and the Rabbit provides 94.2 cubic feet of room under its roof, which makes it nearly as roomy as the interior of the mid-sized VW Passat sedan.

Even with the rear seat in its upright and locked position, the Rabbit provides 15.1 cubic feet of cargo capacity, nearly a cubic foot more than the Passat's trunk. Four tie-down hooks are provided to secure cargo.

The back seat is comfortable for two but has room for three when needed. Legroom is more than adequate and there are cup holders and storage cubbies for those sitting back there. Access to the rear seat is aided in the two-door Rabbit by VW's Easy Entry System. Just tip the front seatback forward until it snaps into place, and then the entire front seat slides forward to make a path to the rear. Slide the front seat back and it returns to its original position with the seatback at its original angle.

Obviously, this feature isn't needed in the four-door Rabbit, which provides rear doors for access to the back seat. Fold the back seats down and the large cargo area is accessible from the rear doors as well.

Front seats are very comfortable and supportive. Volkswagen is promoting the Rabbit as an urban vehicle, but we found it comfortable for long stretches of highway travel. One reason is the improvement in noise, vibration and harshness levels, a benefit of its improved structure. The Rabbit isn't noisy inside, even at freeway speeds, and quiet equals comfort.

Driver comfort is aided by the presence of a steering column that both tilts and telescopes for more personalized fit. The driver's seat in the two-door model features six-way adjustment while the 4-door version gets an eight-way adjustable driver's seat with adjustable lumbar support. The front seats are heated in the four-door version as well.

Drivers in the four-door model can flip the front passenger's seatback forward into a flat position, allowing long objects, such as a ladder, to be carried or to provide a flat surface for a laptop or lunch.

The instrument panel features Volkswagen's gauges illuminated in red and blue. Audio indicators and easy-to-use knobs to adjust the climate controls add convenience.