A replacement for the Rabbit-based cabriolet, the 1995 Volkswagen Cabrio was based on the same platform as the Golf hatchback and the Jetta sedan. It was powered by a 2.0-liter, 4-cylinder, 115-hp engine that was linked to a five-speed manual overdrive transmission. A four-speed automatic overdrive transmission was available as an option.

For 1995, dual airbags and anti-lock brakes were standard, as were power windows, power door locks, a cassette player, and airbags for the driver and passenger. Leather seats and air conditioning were available as options. Other features of the Cabrio included a soft top that was operated manually, a fixed roll bar, and a glass rear window with a defogger.

Overall, drivers were very pleased with the VW Cabrio, and were particularly impressed with its handling, roominess, and safety features. The roll bar, for instance, was considered an essential piece of equipment with regards to safety. The car's gas economy and relatively inexpensive cost to maintain were also appreciated by drivers. However, some noted that space was limited in the back seat, and that the Cabio should essentially be considered a two-seater coupe.