This is my parents' car, but i drive it mostly, and have to deal with the dealership on the ongoing problem with the check engine light coming on. It comes on all the time and they keep telling us its a computer code that has to be updated, and they are waiting for it. They've been telling us that for a year now. Furthermore, the cup holders are awful you cant even fit a "pony" in them. They are poorly designed. Also, how can a car as tiny as a bug get only around 27 mpg? My grandmother had a huge Mercury Grand Marquee with a V8 and it got around 28 mpg. The engine needs to be revamped, there are so many larger cars out today that get a lot better mileage than the Beetle.
It is fun to drive.
Improve the engine. The turbo lag is pretty bad when taking off from a stop. The cup holders were improved on the '06 model, which is good I guess. Definitely improve the electronics and gas mileage!
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