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Both basically achieve the same results at the end of the day. The coil-overs will be capable of lowering the car more than just springs if they have adjustable seats. They are also better if you do lots of track days due to their adjustability. Coil-overs are also lots more expensive than spring kits ~ £1000 as apposed to £200 for a fitted spring kit. From my recent experience in the MK2 you dont want to be lowering more than 30mm below standard or you will start to screw up the handling. I currently have Eibach Pros fitted (previously -40mm AVOs) which dont really lower the car that much but have really improved the handling and reduced roll. There are a few guys on this forum who have gone down the Eibach route. To-date I havent heard any bad reports.
Well, this is the only side-on piccie Ive got of Mikes car, taken at Donnington last year D) - its not too good but you can see how his wheels seem to fill the arches much better than my Mk1 (all standard BTW).