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Coilovers are a single system, the spring and the shock are one piece. The coilover lets you adjust the vehicle height by compressing or uncompressing the spring. Because the spring is adjustable, the ride is harsher (no matter how you adjust it).
Cupkit is a seperate spring and shock. This is the same as OEM. The height is determined by the spring and is not adjustable without replacing the spring. Cupkits are usually matched so that the Spring has the ideal spring rate, giving you the softest ride possible at that height, and the best dampening out of the shock at that level of movement.
Only reason to get coils is to adjust the height. If you don't need to adjust, a good cupkit will offer better handling and ride comfort too.
Edit: Coils also let you go lower than cupkits. They don't make cupkits that go lower than just an inch or two below stock height. Coilovers can drop you wayyyy down. So you can get a much better (lower) looking car with coilovers.
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