Ok, there are hassles when a car breaks down, but they all have new car warranties, right??
I have 2002 Passat 1.8T wagon, and it has given me no problems whatsoever. Nothing. Nothing like the Ford and Chrysler my wife most recently had. I have a great dealership service department too, and an even better local independent VW specialist. (It sounds like I must be the only one...)
Yes VW had a (distant) history of reliability issues, and yes it can cost $$$ if things do go wrong after the warranty expires, just like any European car (or any Japanese built Lexus, for that matter). Is VW reliability any worse than BMW, Audi, Mercedes? I think not. Mercedes has numerous reliability issues at the moment. Audi A4 1.8T's aren't saddled with the same image as VW's, but the mechanicals and electricals are almost identical. Bottom line is reliability has been improving across all product lines and all manufacturers in recent years (except Merc) and the gaps in the figures are closing fast.
Of course I would love to buy a luxurious japanese wagon with a great reliability pedigree, but such a vehicle doesn't exist in our marketplace. (Subarus and Mazdas don't cut it in the luxury department). The VW is great to drive, has more space than virtually all mid-size SUV's, and I average (yes average) 8.7 L/100km. I'd take a new 2.0T wagon in a heartbeat, and the money and running costs (including depreciation) I would save compared with an SUV, or a similar sized luxo wagon such as the 530xi, would more than cover a small amount of reliability induced hassle, if it ever happens. And the warranty would cover the cost....
I say in a heartbeat, but I'm going to try and wait a couple of years until the next gen TDi's arrive (hopefully sooner).
I certainly wouldn't get the 3.6L though.