I'm on to my second VW. The first was a 2006 Jetta TDI, which had precisely no problems in the 5 years I've owned it. This was a manual, and low kms (51,000 by the time I sold it), but it was pretty much running as smoothly as the day I bought it when I sold it. I've now replaced it with a GTI with DSG.
I went with the DSG this time around as it felt so much smoother than the Mk5 DSG and I figured that the technology was 5 years more advanced than the first time around. The hesitancy I found in the Mk5 DSG is no longer there (ignore the reviews which still say it's hesitant, I can't see or feel it), and the normal sports and paddle shift modes just all feel so right now that it's a joy to drive in any kind of traffic.
So far (after all of 2 weeks) I'm really really happy with the change over. The golf feels so much more together than any other car in the price bracket, and it goes so well, even in the running in period.
Servicing is every 12 months or 15,000kms and the Jetta touched me up for about $400 every service. With the 118 TSI DSG I don't think that the DSG oil has to be changed (happy to be corrected on that though), and so the servicing should be about the same (ie $400) all through the warranty period.
I'm also playing the waiting game with the extended warranty. I did the same with the Jetta, and as I had no issues after 3 years I figured that it wasn't worth the extra $1500. I'd just put this into a "fixing" fund and hope that it wouldn't be needed. I'll do the same with the GTI.
Parts are expensive, there is no getting away from that, but on the plus side you have 3 years where this isn't an issue. The mk6 golfs have been built for years now, and as this was effectively a facelift (albeit major) over the mk5 the car has effectively been built in the same way at the same plants for 6 years now, and so any production faults should be well and truly out of the way now. Certainly the GTI feels incredibly well put together and has the solidity that the VE just doesn't have.
I also really dislike the VE auto box and the way that it shifts down (clunk) compared with the GTI. I've had a few VE (SV6s) as hire cars over the last 2 years, and they just feel heavy, awkward at speed and very very thirsty.
I'm currently averaging about 8l/100k with the golf with purely city driving. The VE would be about 14l/100k with the same driving and you have the huge blind spot with the A pillar to contend with...
In short, go with the Golf, you won't be disappointed!
Anglo
MY13 Polo GTI, also Candy White with pleather
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