I bought a 09 Grey TDI 8 months ago and its been the best car I have ever bought. My only wish is that it had HID headlights. So my questions is, is there an aftermarket HID kit I can buy and install so I can replace the awful halogen lights?
The cheapest way is to buy an OEM quality projector headlight and put an aftermarket HID kit into it. You can't do it with a reflector beam like yours because the beam will be all messed up. Check out the Hella Dynabeam - Hella is an OEM manufacturer and they have sensors to turn the beam into turns. http://www.tmtuning.com/HOME/catalog/product_detail.php?default_product=1800 It has a projector lens so all you need to do is put a HID kit into it.
I would get these because at that price, you're about the price of the hella dynabeams + a HID kit. Plus, it'll be OEM quality. OEM HIDS have a better beam pattern than HID bulbs in projector housings but they're acceptable and most people wouldn't know the difference. The difference is that OEM headlamps are bi-xenon, both high and low beam are HID. If you do a retrofit you'll have HID lows only and halogen high beams.
Hella housings are good but I would avoid cheapo ebay headlight housings because while they may look good in a picture, it'll be obvious in person that the plastic is soft and cheap, fitment isn't as good as OEM, wiring isn't built to the same standards, etc.
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