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The small van segment (Under 2.5-tonne GVM) is one of the smallest in Australia’s light commercial vehicle market, as it currently caters for only three contenders, the Volkswagen Caddy Cargo, Peugeot Partner and Renault Kangoo.
Although total sales in this category are a fraction of those achieved in the mid-size (2.5-3.5-tonne GVM) van division, these compact commercials are ideal for buyers not requiring the big one-tonne payload ratings and cavernous load volumes of their larger siblings.
Petrol and diesel-powered models are typically equipped with small displacement engines offering excellent fuel efficiency, combined with cabin ergonomics and driving dynamics which are the most car-like of any LCV offering.
French manufacturer Renault released its third generation Kangoo range in Australia in 2024, comprising a mix of petrol and full-electric variants. We were recently handed the keys to one of the petrol models to see if it has what it takes to win costumers in this three-way fight.
The venerable VW Caddy was launched in 1979 and after five generations and more than four decades of service, it remains one of the world’s most popular range of small vans.
In Australia’s light-commercial vehicle market, the Caddy’s work-focused Cargo model competes in the small van (under 2.5-tonne GVM) segment against the Renault Kangoo and Peugeot Partner.
The VW range offers Cargo (SWB), Cargo Maxi (LWB) and Crewvan (LWB) models with a unique choice of petrol/diesel engines and manual/auto transmissions.
We recently revisited this German workhorse to find out why it remains such a strong seller in Australia from a business perspective.
The latest petrol-powered Kangoo has the pricing, practicality and performance to win friends in Australia’s small commercial van class. If you can afford an option pack or two, like those fitted to our test vehicle, it's even better.
It’s not hard to see why the Caddy Cargo maintains its enduring favouritism in the small van class. It has outstanding workhorse capabilities, unmatched five-star safety and drivetrain choice, combined with a spirited car-like driving experience, be it unladen or with a heavy payload. It’s not perfect, but it's also hard to fault in a workhorse role.
Our test vehicle is less than 4.5 metres long (4488mm) and well under 2.0 metres in width (1859mm) and height (1830mm), making it ideal for those with either limited parking space and/or needing to access space-restricted areas in their working roles.
Its compact 2716 wheelbase results in an 11.3-metre turning circle. This is larger than you might expect, given it’s no tighter than Toyota’s shortest HiAce mid-sized van.
However, it’s also line-ball with its small van rivals, which highlights the restrictions in steering lock shared by front-wheel drive vehicles compared to rear-wheel drivers like the HiAce.
The Kangoo features MacPherson strut front suspension and its rear suspension uses torsion bar primary springing supplemented by a pair of secondary coil springs for carrying heavy loads. There’s also rack and pinion steering and a quartet of disc brakes.
Bodywork and wheels confirm its no-frills work focus, with unpainted dark grey plastic prominent on the hubcaps, front/rear bumpers and along the sides where bumps and scrapes usually occur.
It has tidy styling for a commercial van, including the sharp cabin design that combines a tasteful blend of grey and satin chrome hard surfaces with the practicality of wipe-clean fabric upholstery and vinyl floors.
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.
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.
Our test vehicle’s 1447kg kerb weight and 2010kg GVM results in a useful 563kg payload rating.
It’s also rated to tow up to 1500kg of braked trailer and with its 3510kg GCM (or how much it can legally carry and tow at the same time) it can carry its maximum payload while towing its maximum trailer weight for optimum versatility.
Cargo bay access is through asymmetric rear barn-doors which can be opened to 180 degrees for forklift and loading dock access, or sliding doors on each side with (according to our tape measure) 625mm openings. The walls and doors are lined to mid-height and there’s internal lighting.
The cargo bay’s load volume is a competitive 3.3 cubic metres and with more than 1.8 metres in length, almost 1.6 metres in width and more than 1.2 metres between the rear-wheel housings, it can easily swallow one standard Aussie pallet or two Euro pallets.
The load floor, which does not include a protective liner as standard equipment, offers a choice of six load-anchorage points.
The solid bulkhead doubles as a sturdy cargo barrier and insulates the cabin from cargo bay noise, most of which comes from the tyres emanating through the rear-wheel housings.
Given its compact dimensions, the cabin is surprisingly spacious and accommodating even for someone my height (186cm), thanks to front doors that open to a full 90 degrees, generous leg and elbow room plus a high roof relative to the seating position that adds to the airy feel.
Storage includes a large-bottle holder and bin in the base of each door, single glove box, full-width overhead shelf, large open tray in the centre of the dash-pad and (in standard form at least) a centre console with two cupholders and trays for small items.
However, given our test vehicle is equipped with the optional Business Pack, the standard console is replaced with a more elaborate version, which in addition to a pair of cupholders has a wireless phone-charging dock up front and a box with hinged lid at the back.
There’s also a sizeable clamshell-lid compartment set into the dash-pad ahead of the driver, which includes a smartphone holder on a stalk that can be easily moved to either side of the compartment depending on driver preference.
Our only criticism is the lid on the optional console box. Although it’s been thoughtfully angled downwards at the front to provide the driver with comfortable elbow support, there’s no mechanism on the hinge to hold it in the open position.
This makes it awkward to access the box, as the angled lid naturally wants to keep closing on your hand, so a detent in the hinge would be useful.
And, in a similar context, we’d also like to see hinge detents (or struts) to firmly hold the rear barn-doors open in their 180-degree positions, given their propensity to slam shut if hit by wind gusts during loading/unloading.
This can potentially injure the operator, so these devices should be standard issue, not only for Kangoos but all barn-door vans.
The Caddy’s 1508kg tare weight and 2250kg GVM results in a 742kg payload rating, of which up to 100kg can be legally carried on the roof where external anchorage points are provided for roof racks or rails.
It’s also rated to tow up to 1500kg of braked trailer, although its relatively low 75kg tow-ball download (TBD) limit could present a challenge, given that TBD is typically about 10 per cent of trailer weight. So, a 150kg TBD rating would be better.
Volkswagen also does not publish a GCM (Gross Combination Mass) rating, so we don’t know how much it can legally carry and tow at the same time.
The cargo bay, which offers up to 3.1 cubic metres of load volume, is accessed through a kerbside sliding door or asymmetric rear barn-doors.
Its 1797mm length and 1614mm width with 1230mm between the rear wheel-housings provides good versatility, given it can carry an 1165mm-square Aussie pallet or 1000 x 1200mm Euro 3 pallet, two 800mm x 1200mm Euro pallets, or two 720 x 830mm bread-roll containers.
However, with the sliding side-door’s 695mm opening, all of these would need to be loaded through the rear barn-doors which offer 180-degree opening for easy forklift or loading dock access. The load floor is protected by a thick moulded-rubber liner and there are six load-anchorage points.
The cargo bay walls and doors are lined to mid-height and there are two bright LED roof lights and a handy 12-volt socket.
Driver and passenger have ample cabin storage with large-bottle holders and bins in each front door, a handy pull-out compartment to the right of the steering column, numerous bins embedded in the dash-pad, full-width overhead shelf, a large glovebox and a centre console with dual small-bottle/cup holders and numerous storage nooks.
The Kangoo petrol range is available in SWB (short wheelbase) with a choice of six-speed manual or seven-speed dual-clutch automatic, plus a LWB (long wheelbase) model available only with the auto.
Our test vehicle is the SWB auto, powered by the same 1.3-litre four-cylinder turbocharged engine shared by all petrol models, for a list price of $41,990.
That figure sits comfortably between petrol rivals in the small van class, including the Peugeot Partner Pro Short ($39,990) and Volkswagen Caddy Cargo TSI220 ($43,990).
Our example has been enhanced with genuine accessory carpet mats ($167) plus some desirable options including 'Highland Grey' metallic paint ($800) and the ‘Peace of Mind Pack’ ($1500) comprising blind-spot monitoring, front/rear/side parking sensors, driver attention alert, high-beam assist, navigation, overspeed prevention and traffic sign recognition.
It’s also equipped with the ‘Business Pack’ ($3000) which adds tyre pressure monitoring, hands-free key card, body-coloured external door handles, climate control, adaptive cruise control, centre console with armrest and storage, wireless smartphone charger, extra tinted rear barn-door glass, front fog lights, LED headlights and a leather-wrapped steering wheel.
This is in addition to its work-focused standard equipment list which includes 16-inch steel wheels and 205/65 R16 tyres with a full-size spare, plus auto-door lock when driving, rain-sensing wipers, a reversing camera and more.
The two-seater cabin, which is separated from the cargo bay by a solid bulkhead, is equipped with an electronic parking brake, two USB ports, two 12-volt sockets, a colour 4.2-inch driver’s info display and a multimedia system controlled by an 8.0-inch central touchscreen with wireless Apple CarPlay/Android Auto connectivity and smartphone dock.
In addition to its option packs, Renault also offers numerous single options including a 200kg GCM upgrade, different cargo bay sliding-door configurations, a smart digital rear view mirror and more.
Our test vehicle in standard Candy White is the Cargo SWB, which at entry-level is available with a 1.5-litre turbo petrol engine with six-speed manual or seven-speed auto. Or you can step-up to a 2.0-litre turbo-diesel with either a six-speed manual or (like our example) a seven-speed auto for a price of $45,990 plus on-road costs.
That’s higher than its two small van competitors, given the Renault Kangoo SWB petrol auto lists at $42,990 and Peugeot’s Partner Pro Short petrol auto is $39,990, but the Cargo is unique in offering five-star safety and its drivetrain choices.
The work-focused standard equipment list includes 16-inch steel wheels with plastic covers, 205/60R16 tyres and a full-size spare. There’s also an electronic handbrake, separate cargo bay locking system, a reversing camera, rear parking sensors, heated door mirrors, daytime running lights, two USB-C ports and two 12-volt sockets.
A moulded composite bulkhead with window separates the cabin from the cargo bay. The driver also gets a leather-trimmed flat-bottom steering wheel with multi-function controls, plus adjustable lumbar support for both driver and passenger seats.
The four-speaker multimedia system is controlled by an 8.25-inch colour touchscreen with Apple CarPlay, Android Auto and MirrorLink connectivity and FM radio, but no DAB or (sorry, talkback fans) AM band.
Volkswagen also offers numerous paint colour options and four option packs, plus there’s a genuine accessories range containing useful workhorse items like all-weather floor mats, roof racks, cargo barriers, dashcams and more.
The Euro 6 emissions-compliant 1.3-litre turbocharged four-cylinder engine produces 96kW at 5000rpm and 240Nm at 1600rpm.
Its seven-speed dual-clutch automatic provides the option of sequential manual-shifting plus three drive modes comprising 'Normal', 'Eco' and 'Performance', which alter the shift calibrations to optimise engine efficiency in each setting. They are selected using a button on the dash.
Our test vehicle’s premium 2.0-litre four-cylinder turbo-diesel engine, dubbed TDI320, meets Euro6 emission standards using AdBlue, and produces 90kW at 4250rpm and 320Nm between 1500-2500rpm.
The seven-speed dual-clutch automatic offers three drive modes comprising (default) Drive, Sport or sequential manual-shifting using steering wheel-mounted paddles. There’s also an electronically-controlled automatic locking diff.
Renault claims average combined consumption of 6.4L/100km and the dash display was showing 7.8 when we stopped to refuel at the completion of our 254km test, of which about one third of that distance was hauling more than half a tonne of payload. We also had the annoying engine auto stop/start function switched off for the duration.
Our own figure, calculated from fuel bowser and tripmeter readings, was higher again at 8.6 which was still within the usual 2.0-3.0L/100km discrepancy between official and ‘real world’ figures.
So, based on our consumption number, you could expect a ‘real world’ driving range of around 630km from its 54-litre tank which should only be filled with premium petrol (min 95 RON).
The official combined average fuel consumption is a hybrid-like 4.9L/100km and the dash display was showing 5.6L after our 355km test, of which about one third of that distance was hauling a near-maximum payload.
That wasn’t far south of our own fuel-sipping figure of 6.5L/100km, based on actual tripmeter and fuel bowser readings. Therefore, you could expect an excellent real-world driving range of up to 770km from its 50-litre tank.
Apart from the huge and unavoidable solid-walled blind-spot over the driver’s left shoulder, the Kangoo feels more like a nippy small car than a commercial van.
The driver’s seat has no adjustments for lumbar support or base-cushion rake and the backrest angle is restricted by the bulkhead close behind it, but there’s still enough room even for tall people to find a comfortable driving position.
Its leather-rimmed wheel feels nice in your hands and the unladen ride quality is excellent, with nicely weighted and responsive steering feel, reassuringly strong braking and suspension settings that combine good handling response with supple bump absorption.
The turbocharged 1.3-litre four is a refined and willing performer, albeit with softer response below its peak torque band which is tapped at 1600rpm.
From there it happily spins its way to maximum power at 5000rpm, with the dual-clutch auto getting the best out of this engine in all drive modes, when either unladen or hauling a heavy load.
Its diminutive size and agility are well suited to zipping through heavy city traffic, squeezing into tight loading zones or negotiating narrow and crowded city lanes for delivery work.
Manual sequential-shifting allows more direct control if preferred when hauling heavy loads, or for those simply wanting a more engaging drive experience (particularly in Performance mode).
It's impressively quiet up to 80km/h in city and suburban use, but at highway speeds tyre noise becomes more intrusive (particularly on coarse bitumen surfaces) and some wind noise is evident.
The engine requires only 2000rpm to maintain 110km/h cruising speeds and the (optional) adaptive cruise control is resolute in maintaining its speed settings, even on long and steep descents.
To test its GVM rating, we forklifted 415kg into the cargo bay which with driver equalled a payload of just over half a tonne, or about 50kg under its legal limit.
The rear suspension compressed 55mm, which engaged the long cone-shaped jounce rubbers positioned inside the rear coil springs to provide a second stage of load support.
The Kangoo coped commendably with this payload, floating smoothly over bumps and with minimal effect on handling, braking and engine performance.
It also made light work of our 13 per cent gradient, 2.0km-long set climb at 60km/h, quickly self-shifting down to fourth gear to easily reach the summit.
Engine-braking on the way down was not as robust, as you’d expect from such a small engine with more than half a tonne on its back, but still within expectations for small vans.
Our only gripes are the absence of a full-width driver’s left footrest and that the thick panel separating the bulkhead windows almost completely blocks the central mirror’s view through the LHS barn-door. You can option a smart digital mirror with rear-facing camera to resolve this issue, but that’s another $800.
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.
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.
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 Kangoo petrol is backed by a five year/200,000km warranty, whichever occurs first. There's also complimentary roadside assist for up to four years/120,000km, with annual renewals available after that.
Scheduled servicing is every 12 months/30,000km with capped-pricing for the first five scheduled services totalling $2385, or an average of $477 per year.
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.