New Volkswagen Caddy Cargo and Caddy People on sale from £26,145

• Caddy Cargo starts at £26,145+VAT, Caddy People from £28,900+VAT, on sale now

• 12.9-inch touchscreen, Digital Cockpit Pro and improved phone charging added

• Rivals include Ford Transit Connect and Renault Kangoo

The updated Volkswagen Caddy Cargo and Caddy People are now on sale, priced from £26,145 and £28,900 respectively, both excluding VAT. The revised small van and people carrier get a larger 12.9-inch touchscreen, digital instruments and upgraded driver assistance technology, with first deliveries expected from October.

Inside, all models now feature a 12.9-inch touchscreen and Digital Cockpit Pro digital instruments as standard. There's also a new 25W wireless phone charger, additional USB-C ports and an illuminated touch slider for the temperature controls, along with fresh trim finishes and seat upholstery designs.

Volkswagen has upgraded the Caddy's Travel Assist system, which now has assisted lane changes, while Emergency Assist has also been improved.

Exterior changes are relatively modest, with a redesigned front bumper, new alloy wheel options and four additional paint colours. These include Reed Green Metallic, Grenadilla Black Metallic, Sunset Red Metallic and Grey Brown Metallic, bringing the total number of available colours to 11.

New Volkswagen Caddy price and release date

The new Caddy Cargo starts from £26,145 plus VAT, and the Caddy People from £28,900 plus VAT. Both new models are on sale now, with the first deliveries of the revised model expected from October.

To mark the launch of the updated Caddy, buyers can also finance one from £339 a month. A Caddy SWB C20 TDi Commerce Van 2.0 102PS can be had on Contract Hire for £339 a month for 36 months with a £2034 initial rental, all plus VAT.

Another finance option is a 48-month Solutions Personal Contract Plan at £339 a month. This requires a £6,879.95 deposit, and includes a £3000 deposit contribution from Volkswagen Commercial Vehicles.

New Volkswagen Caddy rivals and used alternatives

The new and improved Volkswagen Caddy Cargo and People models face stiff competition from the Ford Transit Connect and Tourneo Connect, which are based on the same platform, plus the ever-popular Renault Kangoo that comes with the option of an electric version.

There’s also the Citroen Berlingo, Peugeot Partner, Vauxhall Combo and Toyota Proace City quartet that are essentially the same van, and offer more space but less premium interiors and a less car-like drive than the VW.