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I think the OP, might be looking for the best possible outcome for the least possible expenditures.
Dropping in a diesel won't even come close to cheap. The other issues is. . .Even though its a VW. . .Honda parts are still more common lol. The insight might not share alot with others in the Honda fleet but. . .any parts you have to replace will be cheaper than vw ones. VW valves train pieces are more expensive than Ford ones and those are more expensive than Honda ones. In the last few weeks I had to rebuild a Pissat engine, a mustang engine and a civic engine. Pissat was far and above the most expensive for parts despite having fewer cylinders than the mustang and obviously the civic has half as many as the mustang but was cheaper still than 1/2.
Honda ICE's are comparable to diesels in lifetime. I've replaced several fuel assemblies for diesels but so far only 1 honda as come in with trouble and it had more miles than 2/3 of the diesels.
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