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There are three engine codes for the 2.5. If your engine code is ALH your oil filter is located under the oil fill cap. (See Picture Below)
If your engine code is AEG the filter will be mounted like a normal oil filter, somewhere on the side of the block. (See Picture Below)
If your engine code is AFP the filter will be located in a housing,with a cap on the bottom of it with a fastener holding it in place. (See Picture Below)
To figure out your engine code, just read the VIN Number located on the dash on the driver's side of the car. I hope this will help you out. If you have any other questions, please let me know. Thank you.
The correct engine for the 2.5 is a 5 cyl engine attached is the picture of the oil filter housing located in the front of the engine between the fans and the block. There is a cap that you can remove and drain the filter, but if you dont have the tool, you can still remove the filter housing you will make a small mess. Do not attempt to drain the oil if the engine is hot, you may get burned.
The oil filter is a paper type filter
David DeLeon, VW Master Technician
All of the information David has provided is correct. The ALH, AEG pictures are incorrect and disregard them. The AFP code is similar to David's picture but the code is for a 2.8. David's information is correct. I was incorrect about the vin number. The correct location for the engine code is at the front of the engine/transmission joint. The first three letters are the engine code. Also there is a sticker with the engine code attached to the timing belt cover. You can double check your code by checking these locations.
If you provide the complete VIN I can tell you engine code or any code you would need
For info it is also in the trunk on the factor sticker, located on the left side of the spare tire wheel well