I have a 69 Squareback and while I'm certainly no expert, I'll give you my option. The most desirable years are 70 and earlier. The lights, bumpers, and nose become less attractive after 70. (In my eyes.) The engines are basically the same as a bug, the cooling tin configuration is just different. It is a little more constrictive in the engine bay, but it isn't impossible. Start with a good engine and reliability shouldn't be a problem. Both auto and manual transaxles are good in the type 3.
I can't give you the year by year differences, but if you post on
www.athensvwclub.com and ask that question, Pete can tell you more than you'd ever want to know about type 3s.

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Jon
73 Type 481
70 Westy
69 Squareback
68 Single cab
63 Bug