Volkswagen Phaeton W12
The Volkswagen Phaeton was the passion project of Ferdinand Piëch, VW's chairman, who demanded that his engineers build a Volkswagen capable of cruising at 300 km/h all day in 50°C exterior heat while maintaining an interior temperature of 22°C. This extraordinary engineering brief resulted in what may be the most over-engineered car ever produced for its market segment. The range-topping W12 model featured VW's unique W-configuration 12-cylinder engine — essentially two narrow-angle VR6 engines joined at 72 degrees — producing 450 horsepower and driving all four wheels through a standard Torsen-based 4MOTION system. The Phaeton was assembled by hand in VW's spectacular Gläserne Manufaktur (Transparent Factory) in Dresden, a glass-walled architectural masterpiece where customers could watch their cars being built. The interior rivaled anything from Bentley (which shared the same D1 platform), with double-insulated glass, 11 electric motors just for the climate control system, and materials of exceptional quality. Despite these extraordinary qualities, the Phaeton was a commercial failure in most markets because buyers simply couldn't reconcile the VW badge with a six-figure price tag. Today, depreciated Phaetons offer astonishing value — and correspondingly terrifying maintenance costs.
Extreme depreciation makes purchase affordable but maintenance is ruinous. The W12 engine is complex and expensive to service. Air suspension failures are common and costly. The 18-way adjustable seats have numerous electric motors that can fail. Only buy with full VW dealer service history. Budget at least 50% of purchase price annually for maintenance.
84,235 units were produced across the Phaeton's 14-year production run. The car was hand-assembled at the Transparent Factory in Dresden. VW reportedly lost money on every Phaeton sold.