ATTENTION boy-racers, the new WRX STI is here, with 300 horses in rein - just 20 fewer than the very lethal S204 introduced two years ago. And it is $50,000 less expensive too.

But before you jump off your seat to grab your cheque book, let's take a closer look at what the new STI has to offer.

For starters, a brand new hatchback styling. Distinctive, with a shade of Alfa Romeo. While the Imprezas will be available in sedan form later this year, turbo cars are sticking to the hatch shape.

The engine is a 2.5-litre horizontally opposed four-cylinder unit that features an active valve control for improved efficiency.

It seems to be quieter, and the only outward signs of its potency are the large intake on the bonnet and the four-piece exhaust peeking from under the rear bumper.

The higher output engine gets a larger intercooler, so theoretically the car should be able to operate optimally for longer periods.

The driver has a choice of three operating modes: a smooth, economical 'Intelligent' mode; a keener 'Sport' mode; and a 'Sport Sharp' mode that brings forth the quickest throttle response.

But even in the last mode, the car is not nearly as brutal as the S204. Even though the latter is only 0.1 seconds quicker in the century sprint, it feels like a far punchier machine.

The STI has smoothness on its side, though. And it is calm and sure-footed, with a level of handling that rivals a Porsche 911's. The Impreza's improved cabin ergonomics actually contributes significantly to its driveability.

Its vehicle dynamics control, also available in three levels of intervention, ensures that the car does not breach the limit of its tyre grip. A fringe benefit of the system is Hill Start Assist.

The car comes with an adjustable centre differential - three settings in auto mode and six in manual - to suit road conditions or driving preference.

To be honest, I've not encountered any situation here that I need to dial in more traction. The car is suitably nimble when the differential is left in default neutral setting. On local roads, that is perhaps the best choice.

All well and good. But how does the pudding taste with the new recipe?

Frankly, there is no quarrel with the STI's handling. Chuck it into a corner and it exits cleanly, totally unruffled. In fact, it seems to say: 'Is that all you've got?'

Its Brembo brakes - four piston front and dual rear - inspire confidence and yet are not exceedingly harsh.

The car's steering is feathery light, but does not betray even a tinge of woolliness. Personally, however, I would have liked a meatier feel.

The only real complaint, if you can call it that, lies with the power delivery. At the wheel, the STI's prodigious power comes to the fore with reluctance.

Most times, you have to keep revs above 4,500rpm to have a sense of the car's 300 ponies. And for a car with so much power, it is a shame that the redline is at a modest 6,500rpm, which you will hit in a jiffy. To avoid the frustration of running into a wall, you need to shift quickly to second and to third.

Fortunately, the gearbox is fairly friendly, with short throws and decently precise slots. But the clutch pedal is set too high, and requires quite a bit of legwork. It is, on the other hand, a pretty forgiving set-up.

Right then. Now go for that cheque book, if you still think it's worth it.

This article was first published in The Straits Times on Mar 22, 2008.