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Likes

  • Fuel economy
  • Driving enjoyment
  • Load-hauling ability

Dislikes

  • Low TBD rating
  • BSM/RCTA not standard
  • Over-reliance on touchscreen controls
Mark Oastler
Contributing Journalist
8 Mar 2025
9 min read

The venerable VW Caddy was launched in 1979 and after five generations and more than four decades of service, it remains one of the world’s most popular range of small vans.

In Australia’s light-commercial vehicle market, the Caddy’s work-focused Cargo model competes in the small van (under 2.5-tonne GVM) segment against the Renault Kangoo and Peugeot Partner.

The VW range offers Cargo (SWB), Cargo Maxi (LWB) and Crewvan (LWB) models with a unique choice of petrol/diesel engines and manual/auto transmissions.

We recently revisited this German workhorse to find out why it remains such a strong seller in Australia from a business perspective.

Volkswagen Caddy 5 2025: Cargo TDI320

Engine Type Diesel Turbo 4, 2.0L
Fuel Type Diesel
Fuel Efficiency 4.9L/100km (combined)
Seating 2
Price From $45,990

Does it represent good value for the price? What features does it come with? 8/10
8 / 10

Our test vehicle in standard Candy White is the Cargo SWB, which at entry-level is available with a 1.5-litre turbo petrol engine with six-speed manual or seven-speed auto. Or you can step-up to a 2.0-litre turbo-diesel with either a six-speed manual or (like our example) a seven-speed auto for a price of $45,990 plus on-road costs.

That’s higher than its two small van competitors, given the Renault Kangoo SWB petrol auto lists at $42,990 and Peugeot’s Partner Pro Short petrol auto is $39,990, but the Cargo is unique in offering five-star safety and its drivetrain choices.

The work-focused standard equipment list includes 16-inch steel wheels with plastic covers, 205/60R16 tyres and a full-size spare. There’s also an electronic handbrake, separate cargo bay locking system, a reversing camera, rear parking sensors, heated door mirrors, daytime running lights, two USB-C ports and two 12-volt sockets.

2025 Volkswagen Caddy Cargo TDI320
2025 Volkswagen Caddy Cargo TDI320

A moulded composite bulkhead with window separates the cabin from the cargo bay. The driver also gets a leather-trimmed flat-bottom steering wheel with multi-function controls, plus adjustable lumbar support for both driver and passenger seats.

The four-speaker multimedia system is controlled by an 8.25-inch colour touchscreen with Apple CarPlay, Android Auto and MirrorLink connectivity and FM radio, but no DAB or (sorry, talkback fans) AM band.

Volkswagen also offers numerous paint colour options and four option packs, plus there’s a genuine accessories range containing useful workhorse items like all-weather floor mats, roof racks, cargo barriers, dashcams and more.

2025 Volkswagen Caddy Cargo TDI320
2025 Volkswagen Caddy Cargo TDI320

Is there anything interesting about its design? 8/10
8 / 10

Our test vehicle rides on a 2755mm wheelbase with 4500mm overall length, yet its 11.4-metre turning circle is slightly larger than a Toyota HiAce mid-sized van, which highlights the restrictions in steering lock shared by front-wheel-drive vehicles like the Caddy and its French rivals.

Underneath you’ll find robust MacPherson strut front suspension, a coil-spring beam rear axle with Panhard rod, four-wheel disc brakes and electric power-assisted steering.

2025 Volkswagen Caddy Cargo TDI320
2025 Volkswagen Caddy Cargo TDI320

It comes well armoured for work duties with unpainted dark grey plastic used in areas where bumps, scrapes and wear usually occur like the front/rear bumpers (including the rear pillars from top to bottom), door-handles and door mirror-shells. The bright silver alloy-look plastic wheel-covers can also be easily replaced if damaged by kerbs to keep this van looking sharp on the job.

Its purposeful external appearance is matched by a neat and practical cabin design with wipe-clean rubber flooring and fabric-trimmed bucket seats for driver and passenger. Hard surfaces abound in contrasting shades of grey with splashes of satin chrome.

The minimalist dash design is achieved by corralling most functions into the comparatively small (by today's standards) central touchscreen including often-used climate control, engine auto start-stop etc., which can be fiddly and distracting when driving. Thankfully, at least physical dials for audio volume and tuning remain.

2025 Volkswagen Caddy Cargo TDI320
2025 Volkswagen Caddy Cargo TDI320

Explore the 2025 Volkswagen Caddy 5 Range
Explore the 2025 Volkswagen Caddy 5 Range

How practical is its space and tech inside? 8/10
8 / 10

The Caddy’s 1508kg tare weight and 2250kg GVM results in a 742kg payload rating, of which up to 100kg can be legally carried on the roof where external anchorage points are provided for roof racks or rails.

It’s also rated to tow up to 1500kg of braked trailer, although its relatively low 75kg tow-ball download (TBD) limit could present a challenge, given that TBD is typically about 10 per cent of trailer weight. So, a 150kg TBD rating would be better.

Volkswagen also does not publish a GCM (Gross Combination Mass) rating, so we don’t know how much it can legally carry and tow at the same time.

2025 Volkswagen Caddy Cargo TDI320
2025 Volkswagen Caddy Cargo TDI320

The cargo bay, which offers up to 3.1 cubic metres of load volume, is accessed through a kerbside sliding door or asymmetric rear barn-doors.

Its 1797mm length and 1614mm width with 1230mm between the rear wheel-housings provides good versatility, given it can carry an 1165mm-square Aussie pallet or 1000 x 1200mm Euro 3 pallet, two 800mm x 1200mm Euro pallets, or two 720 x 830mm bread-roll containers.

However, with the sliding side-door’s 695mm opening, all of these would need to be loaded through the rear barn-doors which offer 180-degree opening for easy forklift or loading dock access. The load floor is protected by a thick moulded-rubber liner and there are six load-anchorage points.

The cargo bay walls and doors are lined to mid-height and there are two bright LED roof lights and a handy 12-volt socket.

Driver and passenger have ample cabin storage with large-bottle holders and bins in each front door, a handy pull-out compartment to the right of the steering column, numerous bins embedded in the dash-pad, full-width overhead shelf, a large glovebox and a centre console with dual small-bottle/cup holders and numerous storage nooks.

What are the key stats for its engine and transmission? 9/10
9 / 10

Our test vehicle’s premium 2.0-litre four-cylinder turbo-diesel engine, dubbed TDI320, meets Euro6 emission standards using AdBlue, and produces 90kW at 4250rpm and 320Nm between 1500-2500rpm.

The seven-speed dual-clutch automatic offers three drive modes comprising (default) Drive, Sport or sequential manual-shifting using steering wheel-mounted paddles. There’s also an electronically-controlled automatic locking diff.

2025 Volkswagen Caddy Cargo TDI320
2025 Volkswagen Caddy Cargo TDI320

What is its fuel consumption? What is its driving range? 9/10
9 / 10

The official combined average fuel consumption is a hybrid-like 4.9L/100km and the dash display was showing 5.6L after our 355km test, of which about one third of that distance was hauling a near-maximum payload.

That wasn’t far south of our own fuel-sipping figure of 6.5L/100km, based on actual tripmeter and fuel bowser readings. Therefore, you could expect an excellent real-world driving range of up to 770km from its 50-litre tank.

What’s it like to drive? 8/10
8 / 10

Its compact external dimensions are deceptive, as the cabin has ample headroom and it’s not hard for even tallish drivers (I’m 186cm) to find a comfortable position, even though the close-fitting bulkhead restricts backrest recline adjustment and the base cushion rake is fixed.

Small vans are the closest you’ll get to a car-like driving experience in light commercials and, given the Cargo’s unique turbo-diesel powertrain, it has unmatched torque output that provides energetic performance.

The shift calibrations of its seven-speed dual-clutch automatic ensure vigorous response in city and suburban driving, given that for most of the time they keep the engine operating between 1500-2500rpm, where its 320Nm of torque is served at full strength.

2025 Volkswagen Caddy Cargo TDI320
2025 Volkswagen Caddy Cargo TDI320

Combined with nicely weighted steering and four-coil suspension that provides an ideal balance of responsive handling and supple bump absorption, it’s an enjoyable and engaging vehicle to drive. The Sport drive mode and sequential manual-shifting options raise the fun level.

The gearing also ensures low-stressed highway driving with only 1600rpm required to maintain 110km/h, at which speeds the solid bulkhead minimises cargo bay noise that mostly emanates from the rear tyres. However, tyre noise can still be intrusive on certain grades of coarse bitumen.

To test its payload rating, we forklifted 650kg into the cargo bay through the rear barn-doors, which with driver equalled a total payload just shy of its 742kg payload limit. The rear suspension compressed almost 60mm under this weight, with long jounce rubbers positioned inside the rear coil springs providing additional load support and, in effect, a second stage of springing.

2025 Volkswagen Caddy Cargo TDI320
2025 Volkswagen Caddy Cargo TDI320

The Caddy took this heavy load haul in its stride on city and suburban roads, gliding over bumps without a hint of bottoming-out. The payload’s effect on engine, steering and braking performance was minimal and its handling composure was maintained regardless of speed or road conditions.

It also made light work of our 13 per cent gradient, 2.0km-long set climb at 60km/h, and although engine braking on the way down required some assistance from the quartet of disc brakes to keep speeds in check, they handled this task with ease.

Our only criticism of the driving experience is that, given the substantial blind-spot over the driver’s left shoulder caused by the cargo bay’s solid walls, a Cargo buyer must pay extra to get blind-spot monitoring and rear cross-traffic alert as part of an options pack. We reckon these active features are crucial to safe van operation (any solid-walled van that is) and should be standard.

Warranty & Safety Rating

Basic Warranty
5 years/unlimited km warranty

ANCAP Safety Rating
-

What safety equipment is fitted? What safety rating? 8/10
8 / 10

Unmatched by its small van rivals is a five-star ANCAP rating (tested 2021, expires 2027) which applies to all Cargo variants built from July 2022.

It’s equipped with seven airbags, AEB with pedestrian and cyclist monitoring, a reversing camera, rear parking sensors, daytime running lights, non-adaptive cruise control, driver fatigue alert system and more, but you must pay extra for extra safety.

What warranty is offered? What are its service intervals? What are its running costs? 8/10
8 / 10

The Caddy comes with a five-year/unlimited-kilometre warranty and 12 months roadside assist.

Scheduled servicing is every 15,000km or 12 months, whichever occurs first.

An optional five-year pre-paid service package is available for the price of a three-year package ($2000), so that’s two free services and savings of up to $1439 compared to pay-as-you-go capped-price servicing. In other words, an average annual servicing cost of $400.

2025 Volkswagen Caddy Cargo TDI320
2025 Volkswagen Caddy Cargo TDI320

Verdict

It’s not hard to see why the Caddy Cargo maintains its enduring favouritism in the small van class. It has outstanding workhorse capabilities, unmatched five-star safety and drivetrain choice, combined with a spirited car-like driving experience, be it unladen or with a heavy payload. It’s not perfect, but it's also hard to fault in a workhorse role.

Pricing Guides

$40,990
Price is based on the Manufacturer's Suggested Retail Price for the lowest priced Volkswagen Caddy 5 2025 variant.
LOWEST PRICE
$40,990
HIGHEST PRICE
$64,090
Mark Oastler
Contributing Journalist
Mark Oastler has been a prominent motoring journalist in print and electronic media for more than three decades. Now based in Melbourne, his diverse roles have included more than a decade of motor sport TV commentary for both the Seven and Ten networks, editor of Street Machine magazine, founding editor of Australian Muscle Car magazine and freelance contributor to Wheels, Motor, Auto Action, Unique Cars, V8X, AMC, Suncorp and many more. In addition to his regular LCV reviews and advice pieces for CarsGuide, he is also a feature writer and online TV host for the popular Shannons Club website.
About Author
Disclaimer: The pricing information shown in the editorial content (Review Prices) is to be used as a guide only and is based on information provided to Carsguide Autotrader Media Solutions Pty Ltd (Carsguide) both by third party sources and the car manufacturer at the time of publication. The Review Prices were correct at the time of publication. Carsguide does not warrant or represent that the information is accurate, reliable, complete, current or suitable for any particular purpose. You should not use or rely upon this information without conducting an independent assessment and valuation of the vehicle.
Pricing Guide
$45,990
Lowest price, based on new car retail price.
For more information on
2025 Volkswagen Caddy 5
See Pricing & Specs

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