Volkswagen Caddy Engine Problems
Does the 2016 VW Caddy 1.4 TSI use a cam-belt or cam-chain?
The VW 1.4 TSI engine uses a cam-chain rather than a rubber toothed belt which needs periodic replacement. As such, the cam-chain should last the life of the engine (and the rest of the car) but experience with this engine suggests that is not always the case and some early versions of this engine have required cam-chain replacement. The incidence of this seems a bit random, with no real pattern emerging with some cars going on to record normal mileages with no cam-chain problems.
The car you’re looking at, however, is a later version, so should be less prone to this. But even so, make sure the car has a perfect service record as poor maintenance can shorten the life of the cam-chain.
Compensation for Caddy engine replacement?
VW has already come to the party by covering 70 percent of the repairs. That's on a car that is six years old and well out of warranty. I don't think you've got much of a case for more than you've already received.