2004-2006 Volkswagen Phaeton: Full Review

Either engine provides willing power. Our test V8 took 6.8 seconds to go from 0-60 mph, a W12 required just 5.8 seconds. Helped by its alert 6-speed automatic transmission, the V8 matches the W12 for usable power in most situations--and feels as lively around town. The W12's extra thrust is most evident at highway speeds, but both models are effortless cruisers. The V8 is more audible than the W12 at full throttle, but both are always subdued and sound expensive. The real penalty for the W12 comes in fuel mileage. Our test W12s averaged 11.9-13.7 mpg in a city/highway mix. A test V8 averaged 16.0-17.2 mpg, which is a bit low, but about right for the class. Both engines require premium-grade fuel. Phaeton offers a pleasing driving experience. Its long wheelbase, solid structure, astute suspension tuning, and road-crushing weight combine for a controlled, jolt-free ride. Still, the Mercedes-Benz S-Class and BMW 7-Series isolate impacts better, and one test W12 suffered worrisome rear-end clunking on bumps--inexcusable for a car so costly. While quiet overall, there is more road noise on some surfaces than expected in a high-end luxury car. A console dial sets one of four firmness levels: the softest absorbs bumps well but allows some wallow, and the hardest is too taut. Handling is impressive for such a large, heavy car, though steering response is slower than in a 7-Series or A8 and there is more body lean in turns. Nonetheless, handling is always balanced, confident, and predictable thanks to AWD traction backstopped by an antiskid system. Braking is strong and progressive. Inside, the Phaeton is opulent, though some controls could be better designed. Its large gauges are easily read, despite busy graphics. The audio, climate, and navigation settings display on a center-dashboard screen via numerous buttons and switches. While this is a bit complicated, we prefer this design to BMW's daunting iDrive control. Still, some operations require lengthy drilling-down through menus. Other controls would benefit from better placement: The shift lever and/or in-use cupholders block some console controls, and the switches for the windows, locks, fuel door, and trunklid are inconveniently low and forward on the driver's door. The ambience, however, is high-end and fitting for the price. Lavish interior materials are assembled to world-class standards. Wood trim panels descend to hide the vents when dashboard airflow is not in use--novel, but gimmicky. Most occupants should find the Phaeton comfortable. Head and leg room are expansive. The seats are generous in size, but not all drivers find ideal support. A standard power tilt/telescope steering wheel helps fine-tune the driving position. Visibility to the sides and rear can be hindered by wide roof pillars and large headrests. Leg room in the back is also exceptional, but tall occupants will likely brush against the headliner. The rear seats are firm, but the bench isn't long enough for best thigh support. Four-passenger models are limousine-like, with power backrest recliners and a handsome wood-trimmed console with separate climate controls. There is fine interior storage space, and the trunk is narrow, but long, roomy, and well-finished. The trunklid has nonintrusive hinges plus available power open/close, a convenience undercut by finicky keyfob control on some test models.

Value for the Money
At first glance Phaeton has much going against it. Its lofty prices and limousine opulence don't square with Volkswagen's sensible-shoes image. Most rivals offer higher brand prestige, residual values, and customer-satisfaction scores, plus the red-carpet dealer attention monied buyers expect. Those willing to give Phaeton a chance will enjoy understated refinement, benchmark materials quality, and performance that stands up to the like-priced competition, with the bonus of standard all-wheel drive. Slow sales mean deep discounts are available, making Phaeton a fine used car value.