I agree with Arragonis, I have a '96 Golf and it lacks the build quality I have come to associate with German cars (from previous cars of mine), it is a rattly, rusty heap, and very loud inside - no better than the equivalent Ford or Vauxhaul.
If you must go mid 90's I would suggest engines in the following order of preference:
- Turbo, Direct Injection (TDi);
- Non-Turbo, Indirect Injection; and
- Turbo, Indirect Injection (TD or engine code AAZ).
You will get 10% more fuel economy from the TDi (typically 90/110bhp) than the others (non-turbo 60bhp, TD 75bhp). Also the TDi has a gerbox with a much bigger 5th. The TD and non-turbo will rev at over 3000rpm at 70mph, making them noisy and thirsty on long journeys.
There is also a rare engine called an SDi which had direct injection and no turbo, and apparently runs for years and years, not sure if it made its way into the Golf, but certainly was in Polos and some Skodas.