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Take your time. You have a reliable car.
Apparently you have reached a point in life where your priorities have changed with performance fading and economy rising. In a period of 10 years I went from a 10mpg rocket to a new 44 mpg Honda CRX (1984).
Do some research and don't limit your choices avoid the situation where you regret previous decisions. If I knew your location I would check out craigslist in your area for possible choices.
I'm definitely not a fan of a 7-8 year old VW. I would choose the Honda if those were the only choices allowed, and consider the higher cost of diesel in any cost per mile calculations.
regards
mech
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