It is difficult to make sense of a manufacturer that started off selling small economic cars, to now asking well over $100,000 for one of its latest creations. It is best known for creating the most popular and best selling car that has ever roamed the Earth: the Beetle. Most people that have the necessary bankroll to get behind the wheel of a car in this price range are looking for status and glitziness. If the car does not wear a 3-pointed star, an Auto Union logo or the round badge of the Bavarian Motor Works Company, they will most likely buy a private jet instead. Price wise though, the Phaeton could be considered a bargain. When compared to the Phaeton, a BMW 745i priced at $111,500 will get you similar equipment, however it will be without AWD, an adjustable suspension or the rear legroom. As another comparison, $124,545 will get you behind the wheel of a Mercedes S430 4MATIC long-wheelbase. For $15,000 more than the Phaeton, you get a 60 hp deficit and no adjustable suspension.
Thus far, Volkswagen has sold just over 80 Phaetons in 2004, far less than the projected 150 that the Dresden, Germany native was expected to sell. By comparison, Audi has put well over 250 A8s on the road in the same period of time. I think this shows that high-end luxury cars should be left to those who have long ago established a name in that market.
Good stuff:Technology
Power
Luxury
Not so good stuff:Fuel consumption
$100,000 + for a Volkswagen
Lack of prestige