Having seen the prices of the MkV and BMW 1 series, the real world difference in a couple of years time is not going to be much.
I'm heading for the 120d because.....
The Golf is just too Euro-bland styling, it's moved on from the MkIV and is dynamically far superior, but you guys are already changing suspension, so it can't be that good...? The 1 series is being talked about because it's different, styling has moved on and bland is not for me.
The Golf has a brand new 16v 2.0 diesel producing 140bhp.... wow! The 120d 'only' has a 're-hashed' version of an existing engine and puts out 163bhp... now that's got me interested!
The BMW is RWD, who cares if it doesn't have much space in the rear. I've got an estate car if I want to transport adults. I know from experience how much fun a BMW is to drive in standard form so with a chip it should be awesome!
Sorry guys, this isn't meant to be a Golf bashing post, I do still have a place for VeeDubs in my heart, but until they make something special again, fun and agile (no I don't mean another R32!) - sorry I'm off.