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Got to say I think the complete opposite. We have a Golf, a 3yo and a 5yo. While for some trips it's full to the rafters, the reality is it's perfect. And when this one goes I'd probably get another (although EV complicates everything).
I'd love an estate, but in reality for those times I need extra space I just put the roof rack on. The biggest thing holding ours back is that the roof bars are clip on, so only rated to 70kg or something. We used a soft roof box to go to Butlins one year for Xmas, but that was mainly because of all the food and presents. Since having a hard roof box we haven't used it - including long trips down to France. Now we don't have to worry about a travel cot (not that it was massive anyway) it seems even less of an issue.
With kids seats as they are, a wider rear would be good, but for that you seem to need a proper step up to a massive suv or an MPV.
Obvs I can appreciate stevo might need something with a bit more room in the front.
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I'm kind of spoiled by the C-Max in that it takes two full sized suitcases easily and I can fit full length 2x4's inside without any faffing around. I have a roof rack and box, but 99.9% that is just storage. Opened it the other day for the first time in ages and found three folding chairs I meant to take to the dump and my brother in law's mouldy body board from a shared holiday about 4 years ago. And yes, the driver's seat is fully slammed unless someone needs to go behind me, in which case I have to move it uncomfortably forward. I do love the height and visibility also. C4 Picasso/SpaceTourer looks to have 3 actual seats in the back, which appeals. Although even with the C-Max 2 3/4 type rear, that's been enough for the rare occasion there are 5 in the car (ferrying friends or inlaws mainly). I wouldn't be against a 7 seater either if the extra seats could be folded flat. I do like the ability to carry stuff should the need arise.
Yeah. I think Golf / Octavia etc aren't viable as the primary family car.