my wife had a big suv and i drive a pontiac grand prix. She was looking for something smaller and more economical, we started searching for green cars on line and that's when we found out about the TDI engine. WE test drove it tried to find something in comparison with it but we could not find a fair comparison so we bought it. WE love it, i like it more than my wife. I want to get a newer golf TDI but can't afford it right now.
A chip is a software change to the ECM. It changes fuel delivery and turbo boost to give you more power. A few rare dealers install and warranty it but most don't because it'll void the warranty on anything that the chip touches or affects. VW of America (separate from the dealers) definitely won't warranty it.
Moved to the mk5 forum since this is car related. If you want another TDI, the early mk5 Jetta is very similar to your sportwagen. There are misc interior changes and it uses the mk5 front but it should drive about the same. Even after budgeting for maintenance you should be ahead.
I wouldn't mod the car until at least the warranty is expired. The components used on these cars is cutting edge and hasn't stood the test of time. Some have said their fuel pumps or o2 sensors failed but it was covered under warranty. Those are very expensive components and if you had to pay out of pocket you won't be loving your jetta wagon much longer!
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