I'm looking to change my current seven-year old Golf TDI (1.9-litre, 130 bhp) and would like to ask about car engine sizes please. I read that modern engines are much improved and smaller engines can out perform older larger engines.

I'm pretty sure I'll change to another Golf (and stick with a TDI). I like the performance and economy of my current car and for this reason I was only going to consider the newer version of my current engine.

Would I be wise to also check out smaller engine sizes please? On one hand I've been told that a smaller engine is never on top of it's work so won't deliver same performance/economy as a larger engine but other information contradicts this.