Bondo (the filler) isn't bad if used for the right reasons. The only way it'll absorbe water is if the body prep isn't done right and if there is no paint and primer on it.
BONDO
Smoothing out body imperfections ---> Good
Being lazy and covering rust or holes---> Bad
Doing cloth and resin for a beater is fine, but i'd rather weld new metal if you have a welder. I just find it's a real pain to work with at times and can be a real mess. Let us know how it works out.
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