Volkswagen Caddy Cargo 2025 review: TDI320

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

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

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

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

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.

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