Volkswagen made no significant changes to the Vanagon for 1983, so it was essentially the same vehicle that had appeared in showrooms the previous couple of years. The rear-wheel-drive vehicle, which could carry seven to nine passengers, was powered by a 67-horsepower, 2.0-liter, air-cooled four-cylinder engine with fuel injection. A four-speed manual transmission was standard, while a three-speed automatic transmission was available as an option.

The Vanagon was also available with a 1.6-liter, water-cooled diesel engine that generated only 48 horsepower, resulting in good fuel efficiency, but an underpowered vehicle, according to some reviewers. As a result, the diesel engine was discontinued after 1983.

The Vanagon was equipped with rack-and-pinion steering, power-assisted brakes, and front and rear independent suspension. Standard features also included front bucket seats, a rear window defogger, two-speed windshield wipers, vinyl upholstery, and a folding rear bench seat that provided additional cargo space. Air conditioning and a rear window wiper were among the options.

In addition to the standard model, a Vanagon Camper version was available, outfitted by Westfalia. It came with a pop top, a rear seat that folded out into a bed, a refrigerator, stove, sink, storage cabinets, and a pantry.