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Personally I don't think so, they're two distinct markets. The later Mark 2's might be more difficult to sell as people hold out for the Mark 3, but you're talking 10k+ price difference between a 1 and 3 which means mark 1 demand will stay, and so will prices.
 
Simple question....I'm guessing that Mk2 prices will drop? Not that my LC could really drop much lower ;)

Yep mk1 will drop, mk2 more so. Its a shame to see the mk1 being driven by so many neds/chavs etc. Same will happen to the mk2. ALl going well i will buy a mk3 when the new sporty leons come out. If there is no vast improvement on power/engines etc. I will be looking elsewhere
 
It will defo affect the mk1 prices, i keep reading that chavs are buying mk1 LCRs, I don't see any chavs driving LCRs round here, I'm gonna hang on to my mk1 til it's a classic I think. It still looks good and still turns heads.
 
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It will defo affect the mk1 prices, i keep reading that chavs are buying mk1 LCRs, I don't see any chavs driving LCRs round here, I'm gonna hang on to my mk1 til it's a classic I think. It still looks good and still turns heads.

They cant afford the insurance anyway :D Most of the LC/LCRS round mine are near enough standard and not abused. Mk4 golfs are the ones that get abused the most i think. If you can afford to keep running it mate then keep it ;)