For what you get VW's are a little pricy, considering most are "hecho en Mexico". I always like the Passat but the prices approach MB prices and dealer services is nowhere as good as MB. Also you won't get loaners with VW.
I've got a 96 VR6 Syncro Golf and a few mercs,... they are all great cars. You get what you pay for (obviously). I'd rather take a lower spec C over a high spec Passat though (for the same price).
To be honest, I am a service advisor for VW, however I do drive a Benz. I actually do not like VW's at all. The parts they use are cheap. The whole issue with their ignition coils is enough to make anyone never consider buying one. Obviously everyone at work tries telling me that VW is a far better car than my Mercedes, but i have driven my vehicle 25,000 miles since iver owned it and i have had close to no issues with it. I see people in Jetta's and Passat's that are visiting my desk WEEKLY. Its amazing to me! The Touregs, OMG if thats not the biggest nightmare of them all!!
I've always like the GTI line of vehicles. From the old school GTI to the most current GTI's, I still find them very nice looking. Those modified GTI are pretty sweet also when done right.
VW or Audi... sister company from what I know. My first car was 88 Jetta... nice solid car until after 60K miles that's when all the parts start dying. the next car was an 01 A4 Quattro... very sweet ride I must say. I still miss the quattro. but then yes the ignition coil was a nightmare. it died one by one that lasted for a 6 months. They couldn't replace them all at once as it's not defective. The car died on me until i decided to say quits. I've sold and got a 03 MB and been nearly flawless.. Also own a few older MBs now.
For the price you pay for new VW nowadays. I'd rather spend a few $$ to get a better car... MBs!
IMO, the benzes seem more solid. I've owned many a Golf from 2.0L to VR6. The golfs were funner to drive.... better in snow and generally more practical.
However, they were also noisier and had an appearance of being more fragile.
I really like both brands. However, one of my favorite cars is VWs cousin.... the Seat Leon Cupra R. I think that would be a riot to drive.
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