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2004 Volkswagen Phaeton Overview, Reviews, Ratings & Specs

Rating: 4.80
Based on 19 Owner Reviews β–Ά
Jovan | March 31, 2025
The 2004 Volkswagen Phaeton was VW's audacious attempt to enter the luxury sedan market. A full-size sedan, the Phaeton was produced from 2002-2016 globally, but only from 2004-2006 in the US. Key trims included the base V8 and the opulent W12. New pricing ranged from approximately $65,000 to over $100,000. It stood out due to its handcrafted interior, air suspension, and exceptional ride quality, aiming to rival established luxury brands like Mercedes-Benz and BMW.
The Good

The 2004 Phaeton boasts impressive performance with its powerful V8 and W12 engines, delivering smooth and confident acceleration. Its air suspension provides exceptional comfort, absorbing bumps effortlessly. The luxurious interior design and high-quality materials appeal emotionally, while practical buyers appreciate the Phaeton's solid construction, advanced features, and, in the used market, its relative value compared to its original MSRP.

The Bad

The 2004 Volkswagen Phaeton's complexity is its Achilles' heel. Expect potentially high repair costs due to its intricate electrical system, air suspension, and numerous sensors. Maintenance can be expensive. Watch out for issues with the air suspension compressor, navigation system, and various electronic modules. Finding qualified mechanics familiar with the Phaeton can also be a challenge.

2004 Volkswagen Phaeton: Quick Overview

Key specs for the 2004 Volkswagen Phaeton:

  • Engine Options:
    • 4.2L V8
    • 6.0L W12
  • Horsepower:
    • 4.2L V8: 335 hp
    • 6.0L W12: 414 hp
  • Fuel Economy (EPA estimated):
    • 4.2L V8: 15 mpg city / 22 mpg highway
    • 6.0L W12: 12 mpg city / 18 mpg highway
  • 0-60 mph times:
    • 4.2L V8: Approximately 6.7 seconds
    • 6.0L W12: Approximately 5.9 seconds
  • Towing Capacity: Not officially rated for towing.
  • Trim-Level Features:
    • V8: Air suspension, leather upholstery, wood trim, heated front and rear seats, navigation system, premium sound system, sunroof, dual-zone automatic climate control, adaptive cruise control.
    • W12: Includes all V8 features, plus upgraded leather, massaging front seats, four-zone automatic climate control, rear seat entertainment system (optional), and more luxurious appointments.
Both trims came standard with all-wheel drive and an automatic transmission. The W12 offered an even more refined and powerful driving experience, with enhanced luxury features aimed at discerning buyers. Safety features included anti-lock brakes, stability control, and a full complement of airbags.

2004 Volkswagen Phaeton Specifications

Vehicle Information
Year 2004
Make Volkswagen
Model Phaeton
Trim -
Style V-8
Type Sedan
Category Large Car
Manufacturing Details
Made In Germany
Manufacturing City DRESDEN
Dimensions
Doors 4-Door
Curb Weight 5194 pounds
Gross Vehicle Weight Rating 6138 pounds
Overall Height -
Overall Length -
Overall Width -
Wheelbase Length -
Standard Seating 5
Engine & Performance
Engine 4.2-L V-8
Engine Size 4.2L
Engine Cylinders 8
Transmission 6-Speed Automatic
Transmission Type Automatic
Transmission Speeds 6-Speed
Drivetrain All-Wheel Drive
Additional Features
Anti-Brake System -
Steering Type -
Pricing
Manufacturer Suggested Retail Price (MSRP) $64,600
Invoice Price $59,276
Delivery Charges $615

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What Problems Does the 2004 Volkswagen Phaeton Have?

The 2004 Volkswagen Phaeton is known for its potential reliability issues and expensive repairs. Frequently reported problems include:

  • Air Suspension: Air struts and the air compressor are prone to failure, leading to costly repairs. This is a common and well-documented issue.
  • Electrical System: Complex electronics can cause various problems, including issues with the navigation system, infotainment system, and other electronic modules. Diagnostic troubleshooting can be time-consuming and expensive.
  • Cooling System: The cooling system, especially in the W12, can develop leaks and require maintenance. Overheating can occur if not properly maintained.
  • Sensor Failures: Numerous sensors throughout the vehicle can fail, triggering warning lights and affecting performance.
  • Recalls: While specific recalls for the 2004 model year should be checked with the NHTSA (National Highway Traffic Safety Administration), it's crucial to verify if any recalls have been issued and addressed on any used Phaeton you consider purchasing.
Long-term reliability is a concern due to the car's complexity and the availability of parts and qualified technicians. These issues are consistent across the limited US model years (2004-2006).

How long will the 2004 Volkswagen Phaeton last?

Given its age, a 2004 Volkswagen Phaeton likely has accumulated considerable mileage. Well-maintained examples can exceed 200,000 miles, but longevity heavily depends on diligent maintenance. Regular servicing of the air suspension, cooling system, and electrical components is crucial. The Phaeton's inherent complexity means that even with good maintenance, failures are more likely than in simpler vehicles. Weaknesses over time include deterioration of rubber components (hoses, bushings), potential for corrosion in certain climates, and the increasing difficulty of finding replacement parts.

What Technology & Safety Features are Included?

The 2004 Volkswagen Phaeton was equipped with impressive technology for its time:

  • Tech & Entertainment: Navigation system, premium sound system (typically a Dynaudio system), CD player, available rear-seat entertainment system (optional), multi-function steering wheel, trip computer.
  • Driver-Assistance: Adaptive cruise control, parking sensors (front and rear).
  • Safety Features: Anti-lock brakes (ABS), electronic stability program (ESP), traction control, front and rear side airbags, side curtain airbags, tire pressure monitoring system (TPMS).
Optional features included upgraded leather, massaging seats, and a more advanced rear-seat entertainment package. The Phaeton also featured an automatically deploying rear sunshade.

While IIHS (Insurance Institute for Highway Safety) and NHTSA crash-test ratings specifically for the 2004 Volkswagen Phaeton are difficult to find (likely due to its limited sales volume), its robust construction and comprehensive safety features suggest a good level of occupant protection for its era. However, it lacks the advanced driver-assistance systems found in modern vehicles, such as lane departure warning or automatic emergency braking. The Phaeton prioritized a smooth and comfortable ride above outright sportiness.

What Colors Options are Available?

Exterior Colors
Black Magic Pearl
Reflex Silver Metallic
Campanella White
Diamond Black Pearl
Wheat Beige Metallic
Arctic Blue Silver Metallic
Shadow Blue
Indian Blue Pearl
Sierra Red Pearl
Interior Colors
Slate Gray
Anthracite
Sonnen Beige
Crme

2004 Volkswagen Phaeton Prices and Market Value

The 2004 Volkswagen Phaeton had a significant MSRP when new, ranging from approximately $65,000 for the V8 model to over $100,000 for the W12. Currently, used market prices are drastically lower, typically ranging from $5,000 to $15,000, depending on condition, mileage, and trim. The Phaeton experienced substantial depreciation due to its high original price, expensive maintenance, and reputation for reliability issues. Factors affecting resale value include condition, mileage, service history, and the presence of desirable options. Low demand contributes to its low resale value.

2004 Volkswagen Phaeton Cost of Ownership

The 2004 Volkswagen Phaeton is a costly vehicle to own long-term. Insurance premiums can be moderate, but fuel costs are high, especially for the W12. Maintenance and repair costs are significantly above average due to the car's complexity and the price of parts. Unexpected repairs can be very expensive. Due to potential reliability issues, budgeting for substantial repairs is essential. It is definitely not an economical vehicle.

2004 Volkswagen Phaeton Fuel Efficiency

Fuel Type Gasoline
Fuel Capacity 16 gallons
City Mileage 14 miles/gallon
Highway Mileage 21 miles/gallon

2004 Volkswagen Phaeton Safety Rating

NHTSA
Side Driver Rating
Frontal Passenger Rating
Rollover Rating
Side Rear Passenger Rating
Frontal Driver Rating
IIHS
Rear Crash Protection/Head Restraint Ratings Not Tested
Moderate Overlap Front Test Results Not Tested
Side Impact Test Results Not Tested

2004 Volkswagen Phaeton Insurance

Insurance for a 2004 Volkswagen Phaeton is moderately priced, reflecting its status as a Sedan with strong safety ratings and
reasonable repair costs.

How Does the 2004 Volkswagen Phaeton Compare to Other Sedan?

The 2004 Volkswagen Phaeton competed with luxury sedans like the Mercedes-Benz S-Class, BMW 7 Series, and Audi A8. In terms of performance, the Phaeton's V8 and W12 engines were competitive, though not class-leading. It offered a similar level of features and technology. However, reliability was a significant weakness compared to its German rivals. While the Phaeton offered a more handcrafted feel, the S-Class and 7 Series had stronger reputations for dependability.

In today's used market, the Phaeton is significantly cheaper than its rivals, but this comes at the cost of potentially high repair bills. For similar or slightly higher prices, a used Lexus LS offers comparable luxury with far superior reliability. An Audi A8, while potentially sharing some components, may offer a better balance of performance and reliability. Consider the Lexus LS as a better alternative if reliability is a priority, or an A8 if you desire similar features with potentially less maintenance headache.

Ranks #1992 Sedan

1 2023 Toyota Camry (5.0β˜…)
2 2023 Honda Accord (0.0β˜…)
3 2023 Lexus ES (0.0β˜…)
4 2024 Subaru Legacy (5.0β˜…)
5 2022 Mazda MX-30 (5.0β˜…)
6 2024 BMW M3 (0.0β˜…)
7 2023 Ford Mustang (5.0β˜…)
8 2023 Mercedes-Benz AMG GT (0.0β˜…)
9 2023 Audi A3 (0.0β˜…)
10 2023 Chevrolet Camaro (5.0β˜…)
11 2023 Hyundai Elantra Hybrid (0.0β˜…)
12 2023 Nissan Altima (4.0β˜…)
1992 2004 Volkswagen Phaeton (4.0β˜…)

Final Verdict: Is the 2004 Volkswagen Phaeton a Good Sedan?

The 2004 Volkswagen Phaeton is a niche vehicle best suited for enthusiasts who appreciate its unique blend of luxury, technology, and handcrafted feel, and who are prepared for potentially high maintenance costs. It's worth buying *only* if you find a well-maintained example with a comprehensive service history, and if you have a trusted mechanic familiar with the car. The V8 model may be slightly less complex and potentially more reliable than the W12. Avoid if you prioritize reliability or budget is a major concern. A thorough pre-purchase inspection is absolutely essential.

2004 Volkswagen Phaeton Owner Reviews

4.80
Consumer Rating, Based on 19 Consumer Reviews
Overall rating
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Autoguru on January 14, 2021

Remarkable.

I’ve owned many cars, mostly exotics. At one time 17 and two full time mechanics/auto managers. I’ve never given anything a 10. My Phaeton is a 9.

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Bart5 on August 21, 2019

Ultimate Car at a Steal of a Price

The Phaeton was designed to be the ultimate car, headed by chief VW President Ferdinand Piech, you turned VW, Audi, Bentley, Lamborghini, and Bugatti around into premier companies with dream products. The Phaeton was the pinnacle car to complete his journey. I drove this car in a snow storm with around a foot of snow and was able to drive around 4wd, AWD SUVs and trucks stuck on steep hills. This vehicle does everything well, quiet, fast, handles, luxury ride, go anywhere, and extremely safe. It shares parts with Audi A8 and Bentley Continental with a cost to own of half their price. Only about 4,000 sold in US. Buy if you want the ultimate car, a piece of history, large roomy performance German luxury car. Don’t buy if you like simplicity, low cost repairs, non-technical. This car has a lot to offer, lot of luxuries, but that means more to take care of to.

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RB_ranch on November 26, 2018

I would buy a new one today...

I learned of the Volkswagen Phaeton several years ago, did some research, and realized I wanted one of them. In 2012, I found a 2004 Phaeton for sale on EBay in Connecticut. My bid was $9,250, or roughly 12% of its original cost. I flew to Hartford, test drove the car and completed the transaction. The drive back was on interstate highways all the way, and the car performed beautifully, using no oil and getting 22 miles per gallon. Not bad for a large, heavy luxury vehicle! Granted, I have dealt with some expensive repairs, such as the air suspension system and the AC system, but I did not see that as an unusual problem for a car with now having 220,000+ miles. I plan on maintaining and driving this car until I am no longer able to drive. My wife likes it, too. If we?re taking a trip, she prefers my Phaeton over her MB E350. If a person can find a clean Phaeton, I recommend having the local Volkswagen dealer give it a thorough check. If it Is in good shape, buy it. They are wonderful cars. One downside - not all VW dealers have technicians trained to work on these cars. They are NOT your normal VW. If you are some distance from qualified dealers/technicians, consider moving closer. ?

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Pedrordallas on October 30, 2018

Really a very nice car to have

The are has all the luxuries of a Bentley with the reduced price of a VW. It is the best car ever built by VW, but the original price tag was too high. Now it is affordable to have.

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Johnny on June 6, 2018

Awesome piece of art

Truly amazing. Well engineered and made. It is basically a bentley continental with VW badge. Good for long distance traveling and it is filled with all kinds of cool features.

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Kevin Jackson on March 5, 2018

Amazing Car

All of Volkswagen's best hardware in a Bentley level chassis. 4.2L V8 or the amazing 6.0L W12, a 5 or 6 speed DSG trans, Audi quattro four wheel drive with a Torsen torque sensing transfer gear. Inside, a leather ladened high end interior featuring: a draft free climate control system containing 25 servo actuators; heat, cool and massage for all four seats and many more features not commonly seen on luxury cars until the late twentyteens. Outside, the appearance of an oversize Passat - classic turn of the century European generic? Half the price of the comparable Audi and a quarter the price of the Bentley, all three share the same chassis, engines and running gear (though the Bentley's are turbocharged). Still one of the most complicated and sophisticated cars ever made even a decade later. Two miles of wire, over 120 buttons inside, 27 microprocessor based controllers tied together with an optical data network. All that with Volkswagen reliability, you better be wealthy or able to fix it yourself. I fix my own and still spend plenty.

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Phaeton Lover on October 6, 2017

Phaeton is the best car ever owned

I bought a 2004 Phaeton when they first came out as I was in the market for a new luxury car. Prior to that I drove BMW's for 20 years. I was looking at the new 7 series and the Audi A8L when I saw the Phaeton for the first time in a parking lot. I decided to go to a dealer to get more information. Only one dealer in my area had one Phaeton but they would not budge a penny from the sticker price. Visiting family in Phoenix, I decided to check with the dealer in Scottsdale. I drove it and loved it, then took a second test drive with my wife and son. They also loved it so I bought it. Now 13 years later and 183,000 miles on it, it still performed and looked new. No major mechanical work was done to that car. I have always pampered my cars but this was a car I did not want to trade it. Unfortunately, I had a traffic accident this September and the car was totaled. Depressed, I stated to look around the US for a Phaeton replacement and found one in Indianapolis. This one was identical to the one I owned for such a long time with only slightly more than 63,000 miles on it. The car looks like new so I bought it. For those that have never driven a Phaeton, you wont understand the attraction and uniqueness of this car. You are in essence buying a Bently at half the cost. For the last 30 years I have driven BMW's and Mercedes but the Phaeton is the best car I have ever owned. VW has not imported this car since 2006 and maybe because of that, it has a timeless beauty.

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Roy B on June 27, 2017

An amazing luxury automobile...

I am a tall person (6' 8"), yet this car is very comfortable for me. Even with the drivers seat all the way back, there is plenty of room in the backseat for passenger legroom. The air suspension gives it a smooth ride and the V-8 engine has 335 hp. Even though it is a large car, built on a Bentley chassis, I still get 20 miles per gallon. The only drawback is that not all VW dealers are equipped to maintain this vehicle. If they were still selling this car in the US, I would love to have a new one, even though they are not inexpensive.

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bygeorge on March 30, 2017

A little costly for repairs when needed

Just do the annual maintenance and regular oil changes and you won't have much trouble. Make sure you watch the transmission fluid levels so that you catch any small leaks early. The is a complicated high performance vehicle so keep that in mind. Work on it yourself if you know what you are doing or be sure to take it to someone well experienced with either a VW Phaeton or an Audi A6 or A8. Get the W12 rather than the V8. Well work the extra cost.

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Luxury Lady on September 4, 2015

Best Car Ever, Hands Down

I've had my W12 for 15 months and it has been a dream to own and drive. Got it up to 140 mph with no effort (for about 1 minute). Have driven cross country twice with no problem. Because it's the W12 I've met more people that want to buy it then I could imagine. It's a wonderful luxury ride. Everyone is amazed at the huge back seat space. The only problem now is that my friends always want ME to drive so they can ride around in my car. So glad I bought it.

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Jovan

Jovan specializes in interpreting vehicle records and making sense of VIN data. With over 10 years of experience in the automotive data industry, his work ensures that every report is clear, accurate, and useful for car buyers.