Not going to offer any engine advice but sounds a little pricey.
I gave £1700 for my Mk5 TDi, though it's far from prestine.
I'd want to be paying less that £1500 for a car with known issues.
Mate of mine used to have a 2.0 8v Mk4 Cabby and could never quite make 40mpg on a run. I seem to remember it normally in the low 30s average.
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