The T3 generation of the Volkswagen Type 2, also known as the Vanagon in the U.S., as the Transporter or Caravelle in Europe, and also to some in Britain and Ireland as the T25, was built from 1980 until 1991. It was the last of the rear-engined Volkswagens. Compared to its predecessor, the Microbus, the Vanagon was larger and heavier, with square corners replacing the rounded edges of the older models.

The Vanagon was built to be the modern successor to the Microbus. The vehicle, unfortunately, was underpowered given its curb weight.

The predominant variant to the Transporter configuration, the Westfalia camper conversion, was available throughout the production of the Vanagon. This option was quite popular, and included an array of creature comforts for a family to enjoy on a weekend outing including a pop up roof, refrigerator, sink, and stove.

1980 to 1985 vans are easily identified by round headlights and chrome-plated steel bumpers with plastic end-caps. Air-cooled models (1980 to Mid-Year 1983) lack the lower grill above the radiator of the water cooled models. 1986 model year vehicles received several revisions, which included a more luxurious interior with a tachometer, more fabric choices, redesigned air conditioner, larger engine with a more advanced engine management system, and redesigned transmissions including an optional Syncro all wheel drive.

Exterior changes include rectangular headlights, which are probably the most notable change, and different paint options. Alloy wheels, larger and squarer plastic bumpers with trim along the rocker panels were options and standard equipment on Wolfsburg Edition vans. For 1990 and 1991 model years a "Carat" trim level was available which included all available options (except Westfailia conversion).

All 1980 and some 1981 models had 8 welded-in metal slats covering the engine ventilation passages behind the rear windows. Later models had black plastic 16-slat covers that slotted in at the top and screwed down at the bottom.

A four wheel drive version of the Vanagon (called the Syncro) was manufactured in limited numbers from 1986 through 1991. With a short wheelbase and 50/50 weight distribution, these vehicles have surprisingly good off-road capabilities.