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ive used the toothpaste method a few times, works not bad at all. not as good as a machine polisher of course but seeing as most wont have a machine polisher its a good alternative. or buy a restoration kit and use your drill. the kits have all the stuff you need including the uv protection spray.
Any type lacquer recommended? I used a wool pad on mine about six months ago and they're already starting to tarnish, despite using G1+G2 and regular coats of wax.
I'd use a recognised make of lacquer. I've used clear lacquers before that have destroyed the paint below or gone misty themselves. I use a Simoniz Acrylic lacquer and it works fine.