Here is the RS-badged car that doesn't come with a heavy price tag – the Skoda Octavia RS 245.

For something that sits in its current price tag, it offers performance that rivals fabled hot hatches like the Volkswagen Golf GTI and the Renault Megane RS.

For starters, it makes more power than the GTI. Its 2.0-litre turbocharged motor produces a healthy 241bhp and 370Nm of torque, allowing the RS 245 to complete the century sprint in 6.4 seconds.

One special feature that the RS 245 has is the fact that it comes with an electronically controlled limited-slip differential. Put it through its paces and you'll find that it's light on its feet and body control is excellent. Through a series of bends, the RS 245 never broke its composure and handled itself neatly enough, thoroughly deserving of its positioning as a proper sports sedan.

Dress-up bits also separate the car visually from the regular Octavia. Aside from subtle badging, it wears more aggressive bumpers and larger 18-inch wheels. It is the same on the inside, with Alcantara sports seats, a flat-bottomed steering wheel and a generous amount of red stitching all around.

Apart from its obvious performance credentials, the RS 245 remains to be versatile. Just like the standard Octavia, room for passengers is abundant and boot space in the standard seating configuration is a charitable 590 litres.

The souped-up version of the Octavia provides both driving fun and family practicality in spades, without the costliness associated with performance models in this segment.