Volkswagen made a few minor tweaks to its GTI lineup for 1996, though no major changes were implemented for the model year. The two-door GTI came in two versions -- a base GTI with a 115-horsepower, 2.0-liter inline 4-cylinder engine, and a more aggressive, and better equipped GTI VR6 trim package, which came with a 2.8-liter double-overhead-cam V6 that pumped out 172 horsepower. Both versions were linked to a five-speed manual transmission. A four-speed automatic was available as on option on the base GTI model.

New features for 1996 included a central locking system, new cloth seats, a glovebox, and an audio alarm to notify drivers if the headlights were left on. Other 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, a tilt steering column, and optional leather seats.

The GTI's reliability, handling, performance, and cargo space received high marks from drivers. As far as the car's mechanical components are concerned, some drivers have reported no problems, while others noted that as the cars grew older and gained mileage, they've begun to deteriorate,  requiring expensive repairs.