Volkswagens have long been known for their diesel engines, and for 2004, the Golf got a more powerful TDI (turbo direct injection) diesel that still achieved around 50 miles per gallon on the freeway. The Golf's 1.9-liter diesel saw its horsepower upped from 90 to 100, giving it a bit of an extra kick off the line and a bit more help when passing at highway speeds.

The 100-hp diesel could be dropped into both the four-door Golf GL model and the higher-end four-door GLS version. The standard engine in the GL (also available in as a two-door model) and the GLS was a 115-hp, 2.0-liter gas engine. A five-speed manual transmission was standard across the line. A four-speed automatic transmission was optional with the gas-engine Golfs, while a five-speed automatic was optional with the TDI diesels.

Standard features for the base GL package included air conditioning, power windows, power door locks, front and side airbags for the driver and passenger, anti-lock brakes, a tilt/telescoping steering column, an anti-theft alarm system, a keyless entry system, cruise control, and a stereo system with a CD player. The GLS added a power sunroof, among other features. Stability control is optional across the line.

For the 2004 model year, Volkswagen also offered a limited-edition Golf R32, which came with a 240-hp, 3.2-liter V6 engine, a six-speed manual transmission, a dual exhaust system, and a sport-tuned suspension.

The Golf's acceleration, handling, braking, and safety features were cited as positive points by drivers, although some noted that frustrating quality-control issues persisted with the car. The electrical system and automatic transmission were singled out by some drivers as particularly troubling.