For 1998, a remote keyless entry system was added as a standard feature to the Volkswagen GTI, which was available in two versions -- the base GTI and the higher-performance GTI VR6. While the GTI base model was essentially unchanged from the previous year, the VR6 trim package was upgraded, receiving a number of features that had been included on the limited edition VR6 Driver's Edition available the previous year. Those features included 15-inch alloy wheels, a special seat fabric, silver-faced instrument gauges, and a leather-wrapped steering wheel, shift knob, and handbrake.

The base GTI was equipped with a 115-horsepower, 2.0-liter 4-cylinder engine, while the GTI VR6 upped the ante with a 2.8-liter double-overhead-cam V6 engine that pumped out 172 horsepower. Both engines were linked to a five-speed manual transmission. A four-speed automatic was available as an option on the base GTI model.

Standard equipment for the GTI base model included bucket sport seats, power windows, power brakes, power steering, power heated mirrors, a power sunroof, air conditioning, dual airbags, anti-lock brakes, alloy wheels, traction control, an anti-theft alarm system, and an AM/FM/cassette stereo system. The GTI VR6 added cruise control and a tilt steering column. Leather seats were optional on both versions of the GTI.

The GTI's interior, fuel economy, and reliability were among the features drivers enjoyed about the car. Most drivers noted that they have had few problems with their cars, other than normal wear and tear and maintenance issues.