>For me, I have bought my last Volkswagen. <

I hate to say it but I agree. I've owned several old Beetles (going
back to a '58) and also a '98 Beetle (gasoline, non-turbo, five speed)
which I leased when it first came out -- it was a hot item like the
Mini was recently. I only got up to 70K miles on it, not long enough to
experience serious drivetrain issues, but during those three years it
went through FIVE headlights, two driver's-side window switches, the
rubber headliner strip coming unglued, and the rear electric hatch
switch failing. Even today when I see a new Beetle driving past me with
one headlight working, I'm reminded to stay away from the brand until
they work on their supplier issues. To be fair, I did have a lot of fun
driving the car.

> At about 65000 miles there were only a series (5 or more) check engine light episodes <

This is where black electrical tape can come in handy. You place a
small piece of tape over the "check engine" light. Voila. I've done it,
and I've been through more cars than I can count.


>wheel well liners and front air dams tearing off on roll stops<

Same thing with the new Beetle. I considered having it lifted an inch
or so, but wasn't worth the trouble.

>I took it to the local dealership and the problem was diagnosed as a faulty turbo that would cost $1,500+ to replace. <

Is it possible to simply remove the turbo and run it as a normally
aspirated car?

I do give you credit for getting the diesel though...they do get better
mileage and the only unfortunate thing is that VW put a turbo on it
(apparently to boost power, since diesels are known for being a bit
lackluster in low-speed acceleration.) Diesel fuel is also cheaper than
regular in most places.