TECHNICALLY, a coilover is a suspension unit where the coil spring surrounds the damper (which includes MacPherson struts and also many double wishbone front ends) but this is not what you are after.
The conventional usage of the term "coilover" kit (coilies) is a set of MacPherson struts where there is a threaded adjuster for altering the base height and a set of rear suspension springs and dampers where the springs sit on perches with a threaded adjuster for altering the perch height, all so that the ride height can be changed. The rear units do not necessarily (and usually don't) have the dampers surrounded by the springs, since if the original suspension is not mounted this way, then major modifications would be needed.
The design is regarded highly as the ride height adjustment allows corner weighting and also it means the vehicle can easily be lowered. On this forum, the second reason is vastly more important than the first. In real performance terms, just replacing the dampers with higher quality units will often improve suspension behaviour as much as installing a coilover kit (but then the vehicle can't be slammed which buggers the behaviour anyway)
Resident grumpy old fart
VW - Metallic Paint, Radial Tyres, Laminated Windscreen, Electric Windows, VW Alloy Wheels, Variable Geometry Exhaust Driven Supercharger, Direct Unit Fuel Injection, Adiabatic Ignition, MacPherson Struts front, Torsion Beam rear, Coil Springs, Hydraulic Dampers, Front Anti-Roll Bar, Disc Brakes, Bosch ECU, ABS
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