Is Volkswagen a Luxury Car?

While Volkswagen is not generally considered a luxury brand, the manufacturer does make a few models that boast some seriously luxurious features.
Written by Jacqulyn Graber
Reviewed by Jessica Barrett
While Volkswagen is not generally considered a luxury brand, the brand does offer a few models that boast some seriously luxurious features—especially if you opt for a top-of-the-line trim level.
Volkswagen translates literally to “people’s car”. This German motor vehicle manufacturer is best known for the iconic Beetle, which was specifically designed by Ferdinand Porsche to serve as the “people’s car”—that is, a reliable, practical, and affordable option for consumers. 
Today, however, the brand has stepped up its game with a variety of near-luxury options, such as the VW Arteon and even the VW Golf GTI. Here to introduce you to Volkswagen’s highest-class options is
. We'll even show you how to save on
Volkswagen car insurance costs
to make a
car loan
payment more manageable.

Is Volkswagen a luxury car?

Frankly, no—Volkswagen is not a luxury brand by any means. The brand's flagship vehicle, the
VW Beetle
, was commissioned in the 1930s specifically to offer the average consumer a reliable, practical, and affordable option.
So if you’re looking for something as luxurious as an
or a
, VW vehicles simply won’t be able to compete.
However, if you’re looking for something relatively affordable that still feels high-class, Volkswagen does offer some near-luxury options, especially if you opt for a top-of-the-line trim.

What makes a luxury car?

So, if Volkswagen isn’t a luxury brand—what exactly is missing? 
Well, there’s no set-in-stone definition of exactly what makes a vehicle luxurious, but there are a few basic features that luxury brands tend to embody:
  • Increased performance thanks to more-powerful engines and upgraded suspensions for an overall smoother ride
  • Comfort features like genuine leather, heated seats, sunroofs, and even more spacious cabins
  • Technology features such as premium audio systems, advanced infotainment options, and cutting-edge safety features
  • Style features such as aluminum or carbon fiber components,  ambient lighting systems, and thoughtful exterior designs
While Volkswagens certainly aren’t shoddy vehicles, they simply won’t offer the ride quality and plush feel of a genuine luxury vehicle. Of course, it’s important to remember that all that luxury comes at a price—luxury brands tend to be priced tens of thousands of dollars more than their more economical counterparts. 
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Is Volkswagen a good brand?

Even though Volkswagen doesn’t earn the “luxury” title, it’s still a wonderful brand. In general, German cars are known for their fine engineering, and VW vehicles are no exception.
According to car expert RepairPal, the Volkswagen Reliability Rating is 3.5 out of 5.0, which ranks it 12th out of 32 car brands. Keep in mind that Volkswagens do have above-average repair costs, however, estimated at around $676 per year. However, this higher price could be due to the German parts used.

The most luxurious Volkswagen cars 

Although VW isn’t a luxury brand, it does offer a few vehicles with near-luxury features. If you’re looking for the highest-class Volkswagens out there, we suggest test-driving the
Volkswagen Arteon
and the
Volkswagen Golf
GTI. Let’s take a closer look at each.

Volkswagen Arteon

Launched for the 2017 model year, the VW Arteon is a spacious midsize sedan available in five-door liftback or estate body styles. It’s easily the best-looking Volkswagen, which automatically makes it feel much more luxurious than its VW siblings.
The 2022 Arteon has a starting MSRP of $42,045, but you’ll want to upgrade to a higher trim level if you’ve got luxury on the brain. Here’s how each trim is priced:
  • SE R-Line: $42,045
  • SEL R-Line
    : $46,845
  • SEL Premium R-Line: $50,845 
Moving up trims will cost you a few thousand dollars, but you’ll benefit from a more refined cabin with neat ambient lights, real leather upholstery, and a panoramic sunroof.
Your driving experience will also be improved. All-wheel drive is standard on the SEL R-Line and SEL Premium R-Line, as are upgraded 19- or 20-inch wheels, respectively. 
No matter which trim you choose, you’ll find a 300-hp, turbocharged, 2.0-liter four-cylinder engine under the hood—which boasts impressive 0 to 60 mph speeds of 4.6 seconds. That's enough to rival some far more expensive sedans. 

Volkswagen Golf GTI 

Admittedly, the Volkswagen Golf GTI doesn’t look nearly as luxurious as the Arteon—perhaps because it’s a tiny little hatchback—but this sporty vehicle offers a driving experience that feels almost luxurious.
The 2022 Golf GTI is available in three incredibly affordable trims:
  • S: $30,975
  • SE: $35,725 
  • Autobahn: $39,425 
Every one of these options is powered by a turbocharged 2.0-liter four-cylinder that develops 241 horsepower and 273 pound-feet of torque, but you’ll have to pay extra to upgrade from the standard six-speed manual to a seven-speed dual-clutch automatic.
Other classy features that get added on as you move up trims are a 480-watt Karman/Hardon audio system, a cool illuminated grille, enhanced infotainment features, a sunroof, leather upholstery, ventilated front seats, and memory settings for the driver's seat—all features that are absolutely essential if you’re in the market for a luxury experience. 

How to save on Volkswagen insurance with Jerry

Want to hear some great news?
Volkswagen insurance costs
tend to be cheaper compared to their luxury counterparts—and Jerry can help you save even more money by helping you comparison shop for a customized policy.
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If you’re comparing the price of a Volkswagen to a similar luxury vehicle, then no! Volkswagens are certainly more affordable than luxury German brands like Audi and Mercedes-Benz. Compared to more compatible brands, Volkswagens are pretty average in price.
Neither Volkswagen nor Toyota are considered luxury car brands—and how luxurious they seem is really up to you. Truly, the two brands are neck-and-neck. German cars are known for their fine engineering, but Toyota happens to be the world’s largest car manufacturer.
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