When invited to drive Audi's R8, I was curious, excited and intrigued. A colleague I trusted had raved about the car but I put this down to the fact that he'd driven to the launch in a Citroen C3 Pluriel and anything would seem fantastic thereafter. Named after the Le Mans-winning R8 racing car, the roadgoing R8 certainly had the right ingredients - mid-mounted V8 engine, aluminium spaceframe chassis and styling to cause otherwise rational men to resemble slack-jawed yokels. I was convinced, however, that Audi would build in a frustrating carapace of safety margin, ironing out all the excitement. On occasion, it's utterly fantastic to be proven wrong.

Regular readers will probably know that one subject guaranteed to have me climbing aboard the soapbox is Audi's rather half-hearted attempts at building a convincing sports car. This from a company that can build a racing car so brilliant it could probably win Le Mans driven by Rio Ferdinand and Brian Harvey. In short, Audi could build a fantastic sports car for the road but for one reason or other, haven't. Instead, it chose to patronise the enthusiast with some so-so offerings packing a lot of engine but all the subtlety of an elbow to the ocular orbit. Things have changed. And how.

The engine you probably know about. It's the same 420bhp 4,163cc V8 that powers the RS4, a car that moved Audi in the right direction but which still regards its driver as a bit of a berk. Punting 1,560kg of R8 up the road isn't much of an impediment for this powerplant and 62mph will flash by in 4.6 seconds on the way to 187mph. So far, so predictable. What is a genuine eye-opener is the way the R8 involves the driver, crediting its pilot with some judgement and skill.

"It's hard to pinpoint one aspect of this car's dynamics I don't like"

Arrive mid-corner at speed and the R8's handling balance gives you options. It's softer edged than its distant cousin, the Lamborghini Gallardo, but more benign, offering plenty of feedback as to what's going on at the tyre contact points. Both a six-speed manual and a sequential R tronic gearbox (the amazing twin clutch DSG apparently doesn't fit) are offered. I usually detest sequential manuals but really rather warmed to the Lambo-derived R tronic with its aggressive Sport mode and surprisingly adept 'automatic' system. Ride, handling, brakes, visibility, and engine note all get the thumbs up. In fact, it's hard to pinpoint one aspect of this car's dynamics I don't like. Perhaps the steering could use a little more weight. That's about it.

One of the most fascinating things about the R8 is its complex, unorthodox shape. Viewed in profile, it's not conventionally beautiful, looking a little stretched and with some strange design features such as the awkward ridge at the rooftop and the rather weak looking haunches. Move around the car and the shape improves with front and rear three-quarter views looking especially muscular. There are many details to soak in. The side blades which channel air to the engine can be specified in many different colours and finishes. Look closely at the headlights and you'll see an R8 logo etched into the main beam reflector. The twelve LED running lamps that rim the light pod look particularly menacing when looming out of the darkness.

The engine bay is beautifully displayed and the interior is an object lesson in how to package a two seat car with plenty of space, decent visibility and fantastic Audi build quality, the monoposto fascia sweeping from door handle to door handle in a broad arc and encompassing the main dials and information system. There's room in the front boot for a couple of squashy bags and there's also a slot behind the seats but the R8 is otherwise not long on luggage space.

At the moment there is just one engine offered and it's available with either the manual gearbox at £78,195 or the R tronic sequential 'box at £83,395. Standard equipment includes 19-inch alloy wheels, leather seats, bi-xenon headlights, ESP stability control and a retractable rear spoiler.

Desirable options include Carbon Sigma sideblades, extended leather treatment for the cabin, carbon fibre fascia inlays, satellite navigation, electric adjustment for the front seats, parking sensors and the extended light package that includes lighting for the engine compartment. It's not rare for R8s to be leaving dealerships costing well into six figures. One thing Audi do need to get to grips with is dealing with the demands of supercar buyers. There have been some initial grouses about the way waiting lists for the car have been administered and this is one area where there is no substitute for experience. Benchmarking Aston Martin would pay dividends here.

The R8 may well be the sensible mid-engined supercar but don't let that lull you into the false belief that it'll be cheap to run. It comes with some properly exotic running costs as the test route fuel consumption figure of 8mpg demonstrated. Driven (much) more sedately it'll average just over 19mpg if you opt for a manual car and nearly 21mpg if you choose the R tronic equipped model. Get a bit enthusiastic with the R8's playful rear torque bias and you could soon immolate a pair of rear P-Zeros and this 295/30 R19 rubberwear can be an expensive habit.

Insurance is a top of the shop Group 20 but you probably wouldn't expect anything else. Audi run a scheme underwritten by Zurich that's worth a try. Depreciation is a tougher one to get a handle on. The initial slew of speculators jumped on the R8 waiting lists long ago but much will depend on how quickly these cars are built at Neckarsulm. Figures of 350-400 cars a year for the UK suggest that the R8 will never become ubiquitous in the way Porsche 911s are which should help prop up residuals.

The Audi R8 has no right to be this good. Yes, we knew Audi had it in them to build a corker of a sports car but they could have at least respected the hierarchy and produced a couple of duffers before they unleashed something like the R8. It makes many far more expensive exotics look faintly silly. What it lacks - and this sounds a little odd given that we're talking about Audi - is conspicuous badge equity. It's why some will look at the money Audi is charging for this car and still be prepared to lay down several thousand pounds more for a Lamborghini Gallardo or a Ferrari F430.

About the only flaw in the R8's make up is that it's almost too versatile. It'll sit happily in traffic and is eminently commutable but those who can afford a stable of four or five cars might well choose something even more focused such as a 911 GT3 or a Gallardo Superleggera to get their jollies. I think that might be called damning with faint criticism.