I read another post some time ago where someone was quoted $9000 to do the same work, so I spoke to my supplier [Imparts] & asked the question, "are parts very expensive for these engines?" His reply was no they aren't & he was appaled as much as I was at the price quoted.
I would move away from whoever was quoting those silly prices. You need to enter your location so that other members can help steer you to someone who is trustworthy.
The first thing to do is have the engine partly dismantled to assess the extent of any damage. On the T4 Forum in the UK there has been lots of reports on the parts that are damaged if the cam belt breaks. Generally the valves are bent on a couple of cylinders, camshaft breaks into a few pieces, cam followers & lifters crushed. There can also be other damage depending on how fast you were travelling at the time. Prices over there maybe 800 pounds or more. One member said he repaired his for not much more than VW wanted for a belt change. Here's a link to a Co. in the UK that reconditions engines.
VW ENGINES AUDI ENGINE REBUILD ENGINES VOLKSWAGEN ENGINES GOLF POLO AUDI SEAT SKODA BORA CORRADO SHARAN CADDY JETTA ENGINES
Your engine should be an AUF, scroll down & you will see a price of 1195 pounds. There is a company in Sydney called Just Campers that originally advertised rebuilt engines bought in from the UK.
If it was my choice I would stay with what you have, you could be going from the frying pan into the fire.While the 5 cyl T5 doesn't have a cam belt it has other issues.!70,000km is nothing for the T4 TDI engine if you have serviced it regularly, & it sounds like you have.
If you decide to buy another van, both the T4 & T5 have issues with their autos so go for the manual.
Keep us posted & Good Luck.
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