Personally I think you couldn't go wrong with the 1.4 TSI. Got my Octavia with that engine almst 6 mnths ago (VAT free deal) and it's brilliant. I was a committed diesel man, not only for the economy but the way they drive, but this engine was a revelation to me. Smooth, powerful and torquey and a geared so it cruises in a very relaxed manner, no comparison with any normal petrol 1.6, say. And economy is averaging out at 39 mpg in mixed use. OK it's well short of what you'd get with the 1.6 TDI but the difference in price is huge so you've got to do a lot of miles to make it worthwhile IMHO. I imagine even the 1.2 TSI would be OK if you were less fussed about performance.
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