The PD range are very good engines. Excellent performance and economy (55-60mpg in ordinary driving, 60+ on a long run) and much more robust that the latest generation of diesel engines, being as they were without suspect technologies such as common rail injection, diesel particulate filters and dual-mass flywheels. Many people consider them to be the 'high point' of diesel engineering in production cars.

The Mk IV Golf itself however was widely considered disappointing. Although it drove well enough, it had too many random little niggly problems and overall just didn't have the quality people had come to expect of VW. It was around this time that Ford were really upping their game in terms of quality, and the equivalent year Focus was undoubtedly a better car - thus toppling VW's dominance in the hatchback arena. Used residuals on Mk IV Golfs are still relatively high, but because of perceived VW quality rather than actual quality.

Those engines are much better in the Passats of similar vintage. Passats didn't hold their values nearly so much (basically because they're not as 'cool' as a Golf) and hence represent a much better used buy.

Edited by gfewster on 26/01/2011 at 17:03