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My $0.02: The Harbor Freight polisher works well for the money and gets great reviews. The new Bauer version looks nicer/better built than the old maroon one they sold. Use a coupon.
Unless you're a pro, just use Meguiars 105 (cut) and then 205 (polish). They're good, cheap, and readily available (including at Harbor Freight and Pep Boys). You'd have to try hard to damage the paint with these compounds. They also work on plastic headlights.
I've also used the Harbor Freight pads and they are ok for my purposes (occasional polish). Ive also bought better ones from Amazon (dont remember brand - - whatever was highly rated). I seem to recall the Amazon ones were more durable, but ultimately I usually dispose of the pads after a polish or so.
You can make this much more complicated, but for occasional, non-professional use, the above will give very satisfying results.
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