2004 Volkswagen Phaeton problems

The Volkswagen Phaeton ( /ˈfeɪtən/ FAY-tən) (Typ 3D) is a full-size sedan/saloon manufactured by the German automobile manufacturer Volkswagen, described by Volkswagen as their "premium class" vehicle. Introduced at the 2002 Geneva Motor Show, the Phaeton was marketed worldwide. Sales in North America ended in 2006 and global sales ended in 2016.
The name Phaeton derives from Phaëton, the son of Phoebus (or Helios) in Greek mythology, by way of the phaeton auto body style and the type of horse-drawn carriage that preceded it.
Production ended in March 2016 and an all-electric second generation was slated to be produced. Starting in April 2017, the Gläserne Manufaktur Dresden began assembling the e-Golf instead.
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Common 2004 Volkswagen Phaeton problems
Based on complaints from owners of the 2004 Volkswagen Phaeton, several common problems have been reported:
- Electrical Problems: Some owners have reported various electrical issues, impacting different components like the climate control system, power windows, and navigation system. These problems can manifest as failures in heating or cooling the cabin, malfunctioning fans, stuck or faulty windows, and inaccurate display or directions from the navigation system. Resolving these issues may involve repairing or replacing affected components.
- Air Suspension System Malfunctions: Another common problem involves the air suspension system, which can fail or malfunction, affecting the ride quality or causing the vehicle to sit lower than normal. Repairing or replacing the affected parts of the suspension system is necessary to address this issue.
These common problems with the 2004 Volkswagen Phaeton highlight the importance of regular maintenance and prompt attention to any emerging issues to ensure the optimal performance and longevity of the vehicle.
Why did the VW Phaeton fail?
The Phaeton had very serious maintenance and repair issues, seemed to have had an abnormal number of expensive problems. Too bad, it was a nice c ar. Buyers won't buy a luxury car with a non luxury badge.
Are VW Phaeton rare?
But what made this Phaeton even more special was its exclusivity. Believe it or not, only 24 of these beauties were ever allowed to hit the roads.
Does VW Phaeton have timing belt or chain?
The 4.2 liter 40 valve V8 engine was used in several VW Phaeton and Touareg models. The 40V V8 engine is driven by a timing belt system which links the cylinder heads, camshafts, and crankshaft to run in sync.
What is the mileage of the VW Phaeton?
12.8 kmpl
Volkswagen Phaeton Mileage
The claimed ARAI mileage for the automatic variants: Volkswagen Phaeton Petrol is 12.8 kmpl.
Why did the VW Phaeton fail?
The Phaeton had very serious maintenance and repair issues, seemed to have had an abnormal number of expensive problems. Too bad, it was a nice c ar. Buyers won't buy a luxury car with a non luxury badge.
Does VW Phaeton have timing belt or chain?
The 4.2 liter 40 valve V8 engine was used in several VW Phaeton and Touareg models. The 40V V8 engine is driven by a timing belt system which links the cylinder heads, camshafts, and crankshaft to run in sync.
Are VW Phaeton rare?
But what made this Phaeton even more special was its exclusivity. Believe it or not, only 24 of these beauties were ever allowed to hit the roads.
What was the luxury car failure of Volkswagen?
Few people wanted to buy a money-no-object luxury car wearing a Volkswagen badge on the nose. The Phaeton turned out to be the best engineered failure in motoring history. Two decades of hindsight prove that both the Phaeton and the A-class were a step too far.
2004 Volkswagen Phaeton car problems categorized by type of issue
After analyzing all complaints sent to the NHTSA and researching popular Volkswagen Phaeton problems, we found that the most common problems with these 2023 model year vehicles are:
- Structure problems
- Suspension problems
- Electrical system problems
- Steering problems
- Engine and engine cooling problems
The graph below shows statistics for all 2004 Volkswagen Phaeton vehicle components and the number of complaints received.
2004 Volkswagen Phaeton complaints
The NHTSA has received 4 complaints about various vehicle components related to the 2004 Volkswagen Phaeton.
ELECTRICAL SYSTEM,STRUCTURE PROBLEM
- Date Of Incident: 2017-03-03
- VIN: WVWAF63D448
- Components: ELECTRICAL SYSTEM,STRUCTURE
- Summary: TRUNK EMERGENCY ESCAPE/ENTRAPMENT PREVENTION HANDLE NOT WORKING DUE TO DEFECTIVE TRUNK WIRING HARNESS. ONLY APPLIES TO VEHICLES WITH AUTOMATIC TRUNK.
STEERING,SUSPENSION,ENGINE AND ENGINE COOLING,POWER TRAIN PROBLEM
- Date Of Incident: 1901-01-01
- VIN: WVWAH63D448
- Components: STEERING,SUSPENSION,ENGINE AND ENGINE COOLING,POWER TRAIN
- Summary: 2004 VOLKSWAGEN PHAETON WITH FAULTY TORQUE CONVERTER. *KB THE CONSUMER STATED HE HAD TO PAY FOR A $3,00 DOLLAR REPAIR ON THE DRIVER'S SIDE FENDER WHICH WAS CAUSED BY THE HESITATION OF THE CONVERTER ENGAGING. THE CONSUMER STATED HE EXPERIENCED PROBLEMS WITH THE VEHICLE FOR THREE YEARS AND NEVER COULD FIND OUT WHAT THE PROBLEMS WERE CAUSED BY. HE FINALLY HAD AN INDEPENDENT ELECTRONIC CHECK DONE AND THE PROBLEMS WERE AS FOLLOWS; THE CHECK ENGINE LIGHT WAS ON AT ALL TIMES. THE OXYGEN SENSORS WERE REPLACED, BUT THE LIGHT ILLUMINATED AGAIN. THE ESP LIGHT ILLUMINATED AFTER ABOUT 10 MINUTES OF DRIVING AND THE ESP SWITCH WOULD NOT TURN OFF THE LIGHT. HE ALSO COMPLAINED FOR YEARS, THAT WHEN HE TURNED LEFT OR RIGHT TOO FAST OR FROM A COMPLETE STOP, THE ENGINE WOULD HESITATE . THE CONSUMER WAS TOLD THAT WAS NORMAL BETWEEN FIRST AND SECOND GEARS. THE INTERNAL OIL SEAL FAILURE CAUSED THE PROBLEMS. A SERVICE BULLETIN WAS ISSUED, BUT THE CONSUMER WAS NEVER INFORMED OF THE PROBLEM. THE RIGHT REAR UPPER CONTROL ARM WAS REPLACED. THE STEERING WHEEL HAD TO BE RE-ALIGNED. COOLANT WAS LEAKING FROM THE RADIATOR. *JB UPDATED 06/08/10.*JB
STRUCTURE PROBLEM
- Date Of Incident: 2009-08-17
- Components: STRUCTURE
- Summary: 2004 VW PHAETON TRUNK WIRE HOUSING - THE SLEEVE OVER THE WIRE HOUSING CAME OFF AND THEN THE PLASTIC TUBE THAT COVERS THE WIRES BROKE AWAY FROM THE JOINT THAT ENABLES THE WIRES TO COMPRESS BACK INTO THE TRUNK LID WHEN IT IS CLOSED. WHEN HAVING MY TIRES ROTATED THE SERVICE DEPARTMENT CLOSED THE TRUNK LID BUT THE PLASTIC TUBE WAS CAUGHT BETWEEN METAL AND REAR GLASS SHIELD. THE GLASS BROKE AND WAS REPLACE. 2 WEEKS LATER, WHILE HAVING THE 80,000 MILE SERVICE THE TECHNICIAN CLOSED THE TRUNK AND AGAIN THE PLASTIC PIECE WAS CAUGHT AND THE REAR GLASS BROKE. DEALER ESTIMATE TO "FIX" IS $1,300 BUT IT SEEMS LIKE A PRODUCT DEFECT. INTERNET BLOGS AND POSTING SUGGEST A WIDESPREAD PROBLEM AND VW ISSUED A TECHNICAL BULLETIN TO DEALERS ON HOW TO "FIX" - TECHNICAL BULLETIN (TB) NUMBER 97-04-07. *TR
SUSPENSION PROBLEM
- Date Of Incident: 2009-03-01
- VIN: WVWAH63D748
- Components: SUSPENSION
- Summary: CONTROL ARM GASKETS CORRODED ON ALL UPPER AND LOWER CONTROL ARMS LEADING TO METAL ON METAL. *TR
Negative 2004 Volkswagen Phaeton car reviews
Positive 2004 Volkswagen Phaeton car reviews
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I think the car has a beautiful and timeless style, although it may be mistaken for a Passat most of the time. The engine is powerful, but its weight causes a bit of drag. The technology is outdated, but upgrading is simple. The suspension is great on long stretches, although it may be a bit bumpy on rough roads and sharp turns. There may be some minor electronic issues. The cockpit is wonderful, but I had some trouble finding the perfect seat adjustment. The interior lighting is magnificent. The basic headlights are okay, but the high beams are amazing on dark roads. The trunk space is easily the largest in its class. The climate control is as good as it gets. The car has some large and intrusive blind spots, and there is no rearview camera. The sound system is 9/10. Maintenance costs through the dealership can be a nightmare, but now that the car is over a decade old, mechanics are more experienced in dealing with this type of car, and parts are easily accessible at great prices via eBay. I recently replaced my front two struts for a total of $1100 (including diagnosis and labor), whereas VW quoted me $3200 just for the struts (without diagnosis and labor).
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The best car I have ever owned. I have previously owned a BMW 750il and a Lexus LS 430.
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This car has so many great features! It's an absolute pleasure to drive, whether it's day or night. I heard they only sold 900 of them nationally, so it's almost rare and very exclusive. I'm getting 23.3 mpg on the highway, which is not much worse than my Chrysler 300M Special that I traded in. The dealer has been good, but not quite up to Lexus standards.
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As someone who previously owned a BMW 7 series, I was initially apprehensive about switching to a Volkswagen. However, I was pleasantly surprised to find that this car is fantastic and offers great value on the used market. I would recommend getting a CPO or aftermarket warranty just in case, as while they seem to be quite reliable, repairs can be costly once the warranty runs out. The interior is spacious, the engine is powerful, and there are plenty of thoughtful touches that show the designers really thought of everything. The only downside is that some VW dealerships may not be as experienced in servicing higher-end vehicles like this one, but don't let that deter you. Overall, I highly recommend buying this car!
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The VW Phaeton is truly one of the best cars in the world, especially as a used car. The interior is of very high quality and is absolutely gorgeous. The attention to detail is astounding, and the sound system is very impressive. Comfort is second to none, and the number of micro-adjustments that can be made is truly mind-boggling. The drivetrain reeks of German precision, and the design is thoroughly modern. After riding in the Phaeton, my wife, who usually looks every gift horse in the mouth, has been curiously silent. I think she's jealous. Having owned several luxury cars in the past (MB, BMW, Jaguar), I can confidently say that the Phaeton surpasses them all. It's simply a great car.
Jamison Jones 2025-09-10
During the first 18 months, my Phaeton required repairs 19 times, and unfortunately, it left me stranded on the side of the road twice. As a result, I have decided to replace it with a Lexus LS 430, after previously owning an A8.
Floy Schinner 2025-07-21
The Phaeton has an amazing design inside and out, making it the nicest car I have ever owned (and I've owned BMWs, Porsches, and Mercedes). However, I did experience some issues with the car's durability, as it required twelve visits to the shop in just over two years. While the dealership and service people were fantastic, the electronic components and programming proved to be less reliable. Overall, I would say that while the Phaeton's design is a home run, its reliability could use some improvement.
Kevon Block 2025-05-11
My first experience with a Volkswagen has been a mixed bag. Despite the electrical issues I have experienced, the handling, acceleration, and performance have been exceptional. The car has more than lived up to its engineering reputation. Although there have been some challenges with the car's sensors indicating overheating when it isn't, and the occasional dashboard electrical system freeze, I remain confident in the car's overall quality. While the issues have been frustrating, I trust that Volkswagen will address them in due course. This car has a lot of potential!
Andrew Block 2024-06-01
Great car to drive long distances. It's extremely comfortable.