Editor's notes:
History may remember the Phaeton as one of Volkswagen's boldest creations. In one mighty leap, the Phaeton catapulted Volkswagen past the mid-level luxury market to land squarely amongst a small but elite cluster of premium sedans. Though viewed by many as technologically sound, the Phaeton's slow sales proved Americans were not ready to embrace Volkswagen as the manufacturer of ultra-expensive, premium automobiles. Still the Phaeton soldiers on for 2006, searching for a few thousand buyers to help keep it alive. If you care more about features, power and comfort than the logo attached to your key fob, you owe it to yourself to take the Phaeton for a test drive. We think you'll be both surprised and impressed.

What's new for 2006
The W12 model sees an increase of 24 horsepower, bringing output to 444.

You'll like this car if...
If you like the features, power and luxury of such cars as the BMW 7 Series and Mercedes-Benz S-Class, the Phaeton will definitely impress you with its ability and (slightly) lower price.

You may not like this car if...
If the label on your clothing is as important as the garment's visual appeal, having the VW logo prominently displayed on your car's grille probably won't make the grade.

Exterior
The Phaeton clearly has some Volkswagen DNA in its design. Though comparisons with the Audi A8 are inevitable, the Phaeton employs crisper lines around the headlights and tail lights, as well as in the subtle shoulder lines that span the car's sides. The Phaeton does not stand out as boldly as the BMW 7 Series, but it certainly makes an impression.

Interior
The Phaeton pampers its front and rear-seat occupants. From the driver's point of view, there seem to be a great many buttons to learn and memorize. The Phaeton's steering wheel, for example, has no less than eight buttons and one thumb-activated mouse wheel. Seating inside the Phaeton is generous, especially in the area of legroom. Rear-seat headroom, however, is stifled due to the tapered rear roof. No one will complain about comfort in the Phaeton, where massaging and heated seats work on tired backs, and the rear-seat headrests automatically lift into place the moment they sense your presence. In addition, each passenger can regulate his or her own temperature zone, with pillar-mounted vents to help move air to the rear quarters.

Notable standard and optional equipment
The Phaeton features a 335-horsepower V8 engine, 4MOTION all-wheel drive, six-speed Tiptronic automatic transmission, four-zone automatic air conditioning, xenon headlights with washers, air suspension, inside and outside auto-dimming mirrors with tilt-down feature on the right mirror, power glass sunroof, DVD navigation, AM/FM stereo with six-disc CD changer, front and rear side and head-curtain airbags, cruise control, heated leather bucket seats, power rear sunshade and 18-inch alloy wheels.

Options
Options include a 444-horsepower W12 engine, 18-way power driver's seat (16-way passenger), four-passenger seating with rear console, rear controls and screen for air conditioning, 10-way power rear seats with massage feature and power lumbar support, keyless entry, electronic parking assist, heated steering wheel, power closing trunk and an audio upgrade package (V8 model).

Pricing notes
The V8-powered, five-passenger Phaeton has a Manufacturer's Suggested Retail Price (MSRP) of $68,670, while the top-of-the-line W12 four-passenger model is $104,970. A look at the New Car Blue Book Value shows buyers are paying between $1,000 and $2,500 below MSRP, depending on model and equipment. Despite its lofty price tag, the Phaeton is not expected to hold its value well, retaining just 55 percent of its original value at 24 months and a poor 41 percent at 48 months. That's well below the values held by the Audi A8 and BMW 750i.

Driving impressions
For such a big car, the Phaeton is decidedly quick in the turns. The steering feel is light at first, but quickly firms up as its speed-sensitive servo assist dials in the proper feedback. As you depress the accelerator, you'll feel the Phaeton's 335 horsepower almost immediately. The rush of power doesn't jump out or startle you, but rather applies itself in a steady, linear fashion. The V8-powered Phaeton clearly prefers to sweep you up to speed rather than catapult you there. You'll hardly notice the marvelously smooth Tiptronic automatic ticking off gear changes, unless of course you choose to make those changes yourself. The Tiptronic accepts your commands without hesitation, holding off shifts until you either tap the lever or the engine reaches the tachometer's red zone.

Our favorite features
Limo-Like Rear Seats
The limo-like rear seats, with their own air conditioning screen, create a lush cocoon your passengers will be reluctant to leave.

Price Tag
For what the Phaeton gives you, it's hard to argue with the price.

Under The Hood
The Phaeton's V8 is more than sufficient to move the car's 5200 pounds. Though clearly not as quick as the awesome W12, VW claims the V8 Phaeton can dash from zero to 60 mph in 6.7 seconds, while the W12 can accomplish the same thing in less than six seconds. A move to the W12 brings more power and prestige, but also includes a significantly higher price tag and egregious fuel consumption. Phaetons equipped with the W12 engine substitute the V8's six-speed automatic with a five-speed transmission.

4.2-liter V8
335 horsepower @ 6500 rpm
317 lb.-ft. of torque @ 3500 rpm
EPA city/highway fuel economy: 16/22

6.0-liter W12
444 horsepower @ 6000 rpm
406 lb.-ft. of torque @ 3250 rpm
EPA city/highway fuel economy: 12/18