The one most people want is the 130hp 1.9TDI. The blend of power and fuel economy really is very good. Unfortunately, prices reflect the demand and you don't get a great deal for your money.

Especially with a new driver on your policy it might be a good idea to look out for the 100-110hp versions. Same basic engine, but obviously not as much grunt.

I had a 115 bhp 1.9 TDI Golf estate (from 2001 to 2004) which went very well.

Most people are not crooks, but some are. Look for type of usage (local / M-ways / commutes at full throttle etc), convincing paperwork that matches all the other visual evidence, ask for the 'story' of the car's use, to get a feel for true or false. Listen carefully and let the seller talk.

If buying privately, insist on seeing the car at the seller's home - that may also provide clues as to how wary or not you need to be.

Dealers obviously need to make money and generally will only sell at higher prices so they can build in their 25-35%. Independents are your likely best bet in your price range. Both give you better legal protection than buying privately I believe.

Check out some VW or Golf forums (fora??!!) for more detailed advice and perhaps some specialists.