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Volkswagen Golf 2012: Is it worth replacing the engine?

The 2012 Volkswagen Golf I inherited has an engine fault and needs to be replaced. It has only done 60,000 km and is in good condition. If we pay for a new engine for approx. $5000, how does it affect the retail value i.e. higher as engine is new, or lower as people could be scared off?

It’s unlikely to have any effect on the value at all. Some people could be scared off by a 2012 Golf, given its history of engine and transmission problems, while others might consider a new engine a bonus without wanting to pay any more for it.