MK IV Golf/Jetta/NB with the ALH engine (1999-2003) are great little cars. My experience is low 40's MPG wise. They're generally pretty bulletproof, but there are some maintenance items that should be known before buying one. I would look for a car owned by a savvy TDI owner who maintained it properly, rather than a low mile example. VW diesels are reliable and economical when maintained properly, but NOT zero maintenance. Parts can be expensive.
Otherwise go looking for the newest Asian car you can afford.
