I had an 87 Fox wagon that I bought for $400. The oil light stayed on in it. I replaced the two oil sensors on it and the light still stayed on. Next I hooked up a mechanical oil pressure gauge to the sensor and mounted the gauge on the hood. Nice racy look. It indicated oil pressure, plenty of it. The fix? A good rap on top of the instrument cluster and the oil light would go out. I never fixed it, but it was obviously the cluster wiring. Something to consider. I hear VW's sometimes have wiring issues, and I've had my experience with it.

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