I can feel your pain here as my 3.0 TDI D3 was financially written off in May when an elderly lady decided to suddenly pull out of a sideroad. Minor enough damage to the front corner but the potential new parts bill meant a 2004 car with 250k miles was not going to be repaired by her Insurers.
I faced the same choice but having spent over 5 years in the D3 clocking up all those miles, I sort of wanted a change as I rarely keep my cars for so long.
I ended up buying a 2011 D4 SE Executive with the 3.0 TDI.
The D4's worst feature is definitely the much shorter boot. In my opinion the D3 is also better looking motor and wouldnt be mistaken for an A4 or A6 like the D4 does. Penny Pinching is also evident in places such as the seat heating controls. The build quality just seemed better on the D3.
Overall though, I have no regrets with my choice. The 8 speed box is fantastic and the consistent 5-6mpg more is also welcome given the miles I do. Google Maps on the Sat Nav, Wi-Fi and a much more modern MMI make the Cabin seem light years ahead in ways. If you can justify the expense of a D4, go for it.
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