Joe, funny this subject should come up. I am selling a '98 new Beetle (but not to you) which was the first car for 2 daughters. We've had it since 2000. Now they are definitely not car guys! Overall it has been a piece of $#@*&(. The new Beetle is known to be very problematic, of course especially the '98 which was the first year. It is basically a Jetta with a rounded body. Funny the mechanicals have not been that bad, but the other stuff is horrible - lots of plastic that broke: radio buttons, head liner trim, cigarette lighter mount, cup holder tab, batter cover plastics, tail light holder tabs, high beam headlight mount, under engine tray, etc., etc. the list goes on an on of stuff that just gave up with no reason. They loved the car, great chick car. Sure they neglected the car quite a bit, but it did end up quite reliable, can't recall any tows for example. But the little stuff that needed attention just went on and on.
Agree with the recommendation on stick with the Japanese. My son (and I) chose a 4Runner, very happy with that choice, there are some good examples (both 2 and 4wd) out there with low-medium miles in good shape around $5K or just a bit more.
I just don't understand why VW couldn't get it's act together, their engineers can't be that bad, but somehow the overall design of the VWs in the past decade or more has left something to be desired. I think the overall designs and concepts are very good, but the micro-design like material choices have been terrible, maybe to trim costs.
Roland