2004 Volkswagen Phaeton W12

Driving the W12 earns you the right to hang out with the BMW 760Li crowd, but most luxury buyers will be satisfied with the A8 L V-8. For rabid, financially able enthusiasts, the Lambo-V-10-powered 2005 Audi S8 is the supersedan to wait for.

Volkswagen is in a different position, as the elegantly executed, full-size Phaeton attempts to take the brand into new segments where, so far, it has not been accepted. Although the Phaeton is in no way a rebodied A8, or vice versa, the two share a lot of componentry, including powertrain architecture.

The W-12 engine makes only 420 horsepower in VW trim, still enough to move this car in smoothness and with haste. Its 5.7-second 0-to-60 time is 1.4 seconds quicker than that of its V-8-powered stablemate. The Phaeton's Learjet-like interior offers every convenience one could ask for.

We must admit to a case of sticker shock when our W12 tester hit the garage. Is the world ready for a Volkswagen with a base price of nearly $80 grand and an as-tested bottom line just over $90K? VW is confident there's a small population of "stealth wealth" types who want something different than the usual S-Class and hopes they'll take down the 300 W12s per year it plans to import. Marketing exercise and brand challenges aside, the Phaeton W12 is as good a premium flagship as exists.