The Volkswagen that out-luxes a Mercedes—without being an Audi

When you think of German luxury cars, names like Mercedes, BMW, and Audi probably come to mind first. But there’s a Volkswagen that quietly delivers all the luxury, style, and performance you’d expect—without the sky-high price tag.

In a world where luxury often comes with a six-figure sticker and a shiny badge, the Arteon slipped in under the radar. It offers Audi-level refinement, BMW-like handling, and Mercedes-style comfort, all wrapped in a sleek fastback that turns heads—yet it’s a VW, and far easier on the wallet.

Most buyers overlooked it, which is a shame, because for anyone who values driving pleasure over badge prestige, the Arteon is one of the smartest, most underrated sedans out there. VW may be better known for hot hatches and SUVs, but this sedan can hold its own against the best German luxury names.

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The Volkswagen Arteon: A forgotten gem in luxury sedans

Credit: Volkswagen

Built from 2019 to 2023, the VW Arteon isn’t the first car that comes to mind when you think of a German sedan that can rival Mercedes or BMW. But maybe it should be.

With surprisingly powerful engines, quick sprint times, and a price that doesn’t scream luxury, the Arteon has a personality that’s impossible to ignore.

Add in plush features, comfy interiors, and a sleek sleeper style that’s still effortlessly cool, and you start to wonder—what could have happened if more U.S. buyers had discovered it?

Base Trim Engine

2.0L Turbo Inline-4 Gas

Base Trim Transmission

7-Speed Automatic

Base Trim Drivetrain

Front-Wheel Drive

Base Trim Horsepower

300 hp

Base Trim Torque

295 lb-ft @ 2000 rpm

Fuel Economy

25/33 MPG

Make

Volkswagen

Model

Arteon

Segment

Midsize Sedan

The Arteon shows Volkswagen knows how to turn heads

Credit: Volkswagen

Volkswagen’s Arteon is proof the brand can deliver way more than sensible, get-the-job-done cars. With its fastback shape and frameless doors, it has a coupe-like vibe and a level of personality you don’t usually associate with VW sedans.

Inside, the surprises keep coming. The cabin feels modern and upscale, with clean lines and big digital displays that wouldn’t be out of place in a pricier German model.

And the best partis, it still nails the everyday stuff—plenty of space, real usability, and the kind of easygoing comfort you want from a grand tourer that refuses to pick between style and practicality.

The unexpected challenger to German prestige brands

Credit: Volkswagen

When the Arteon first arrived in U.S. showrooms, it caught plenty of people off guard. VW was the brand known for a touch of luxury wrapped in a lot of practicality—think Jetta or Passat—not a sleek fastback that looked like it rolled out of a BMW or Audi catalog.

Here was a Volkswagen that didn’t just gesture toward the prestige brands but aimed straight at them with confidence. Its upscale design and spacious interior made it clear the Arteon wanted to stand alongside the big German names, not behind them.

Price-wise, back in 2019, it came in well below rivals like the Audi A5 Sportback, BMW 4 Series Gran Coupé, and Mercedes-Benz CLE. Even with that lower sticker, it delivered strong power, real sporty character, everyday versatility, and the kind of European luxury presence that stands out on American roads.

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How the Arteon’s style evolution made VW look like a luxury leader

Credit: Volkswagen

From its debut, the Arteon made a bold visual statement with its fastback profile and frameless doors. Higher trims like the SEL and SEL Premium added bigger wheels, ambient lighting, and a more upscale cabin, while the 2019 R-Line dialed up the sportiness with unique bumpers, badging, and 19- or 20-inch wheels.

In 2021, VW sharpened the Arteon’s styling with a wider grille and a full LED light bar that pushed it closer to its German luxury rivals. By 2022, every trim carried the R-Line look, giving even the base model a premium, athletic presence.

Mercedes and BMW can match the style, but you’ll spend considerably more to get it.

Performance that lets it compete with its German rivals

Credit: Volkswagen

The Arteon wouldn’t stand a chance against its German rivals if it couldn’t perform, but for a sensibly priced VW, it can really move. Models from 2019 to 2021 came with a strong turbo-four that pushed out solid power and torque, sending the 3,600-plus-pound sedan to 60 mph in just under 6.5 seconds.

Volkswagen Arteon performance specs

The final model years push the Arteon’s performance straight into luxury-sedan territory. AWD models hit 60 mph in just 4.6 seconds, outpacing the 2022 Mercedes EQS 450+ Pinnacle, BMW i4 eDrive40 Gran Coupe, and Audi A4 Prestige, while matching the manual 2019 Porsche 718 Boxster.

The go-fast features that turn it into a luxury sleeper

Credit: Volkswagen

The Arteon may turn heads with its design, but its performance makes an even louder statement, especially in the 2022 and 2023 models. A 300-horsepower engine pairs with the same seven-speed DSG dual-clutch transmission found in the Golf R, delivering sharp shifts and impressive 0–60 times.

Available 4MOTION all-wheel drive keeps that power planted with confidence, while adaptive chassis control (DCC) tweaks suspension settings for comfort or agility on the fly. The result is a luxury sedan that handles twisty roads like a sports car but cruises highways with effortless composure—truly a sleeper gem in plain sight.

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High-end comfort, smart design, and everyday usability

Credit: Volkswagen

To match its Mercedes-level ambitions, the Arteon’s interior is slick, spacious, and packed with luxury touches. Front passengers enjoy 41.2 inches of legroom, the rear seats offer 40.2 inches, and folding the back opens up 56.2 cubic feet of cargo space.

Standard gear impresses with heated front seats, Climatronic tri-zone climate control, and V-Tex leather upholstery. Ambient lighting, contrast stitching, and aluminum or Black Carbon trim add style, while upper trims like the SEL Premium R-Line step it up with:

• Ventilated front seats
• A massaging driver’s seat
• Heated steering wheel
• Panoramic sunroof

Smart tech everywhere you look in the cabin

Credit: Volkswagen

Every Arteon comes with Volkswagen’s Digital Cockpit, a fully customizable display that lets drivers set up navigation, speed, and assist systems their way—familiar territory for recent VW owners. Earlier models offered an optional 9.2-inch touchscreen, so it’s worth checking the used market if that’s important to you.

Apple CarPlay and Android Auto come standard across the lineup, keeping connectivity seamless. Higher trims add premium touches like a head-up display, wireless charging, gesture controls, and a Harman Kardon sound system, taking the cabin far beyond what you’d expect from a typical Volkswagen sedan.

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The VW Arteon experience for today’s driver

Credit: Volkswagen

The VW Arteon may not wear a Mercedes, BMW, or Audi badge, but it delivers serious luxury—and it never demanded a fortune. When it hit U.S. showrooms in 2019, prices started around $37,000, rising to just over $44,000 by the final 2023 model year.

Today, used Arteons go for roughly $18,000 up to $32,000 for the newest top trims. Luxury cars often lose value fast, but in the Arteon’s case, it’s not about quality or reliability—it’s simply that these sleek, capable sedans didn’t get the attention they deserved when new.

Average used values for the Volkswagen Arteon

Credit: Volkswagen

Running costs and key things to know about the VW Arteon

Credit: Volkswagen

CarEdge gives the VW Arteon an overall cost-to-own rating of “C-,” so it’s not perfect, but it’s far from terrible. Depreciation hits hard, with a reported 46 percent loss over five years, and fuel costs can add up, though that’s fairly normal for the luxury segment.

The good news is maintenance costs are low, making up just 4 percent of total expenses over five years, with an average bill of $2,152—or about $430 a year.

Fuel economy depends on the model year, thanks to the 2022 engine update. A 2019–2021 Arteon averages 25 mpg combined (22 city / 31 highway), costing around $2,500 per year for gas, while 2022–2023 models offer more power and slightly better fuel efficiency for FWD versions, with 4MOTION AWD matching the older numbers.

Volkswagen Arteon EPA estimates

The Arteon isn’t the cheapest luxury car to run, but looking past the costs reveals a well-priced sleeper sedan. It delivers style, speed, comfort, and plenty of praise from those who have owned it.

According to Kelley Blue Book reviews, 95 percent of Arteon owners would recommend it, giving the car a near-perfect 4.9 out of 5 overall score.

Other underrated luxury sedans to consider

Credit: Cadillac

It’s a shame for fans of ICE sedans that the VW Arteon was discontinued after the 2023 model year. Volkswagen replaced it with the ID.7 EV in 2024, offering plenty of luxury and sleek style, just with electric power instead of a traditional engine.

The Arteon isn’t the only luxury sedan capable of challenging Germany’s big names in a more understated, affordable, and “less flashy” way. Plenty of hidden gems deliver performance, comfort, and style without the premium badge.

Under-the-radar sedans with power and value