In a Formula One race dominated by Mercedes' world championship leader and native Nico Rosberg, the rest of the field were left to fight it out for the final two podium places at the Hockenheimring.
Williams driver Valtteri Bottas crossed the line in second and Rosberg's team-mate Lewis Hamilton took third, while Vettel finished inside the top four for just the third time this season.
Fellow Red Bull member Daniel Ricciardo placed sixth.
Speaking post-race, four-time world champion Vettel said he was pleased with how the day eventuated, especially after his intense dual with Ferrari rival Fernando Alonso.
"It was quite entertaining the first half of the race and at one point it was quite tight with both the Ferraris, but we managed to stay ahead," the German said.
"The second stop was a bit too close and Fernando was able to pass without too many difficulties, which put us on the back foot.
"We decided to be a bit more aggressive towards the end and make sure we got the undercut and then we could put some gap between us, which was crucial for us as we were quite tight in terms of fuel towards the end of the race.
"I think that was the best we could get today. Daniel just missed passing Fernando at the end unfortunately."