The Toledo was never a sporty car, and with a big a55 over the rear wheels, that floaty feeling is almost 'designed in'.
I'm in the process of trying to get it dialled out. First, I've gone for a set of Powerflex bushes, with the main priority being to replace the rears. Rumour has it that a lot of VAG cars struggle with the rear bushes, so I'm very much expecting mine to be mush. That hopefully should allow the suspension to go up and down rather than wherever it feels like.
Second was to sort out damping. My car has 125k on it now, and as far as I can see the original dampers. I've bought myself a set of four Bilstein B4 dampers, basically standard kit but brand new and with a name like Bilstein, hopefully good quality. I'm not replacing the springs, I want to maintain the ride height for now.
Once they're on there and I've given it a bit of a run-in period, I will be purchasing a Whiteline 24mm rear anti-roll bar, which should hopefully remove any remaining rear end marshmallows.
The original plan had been for coilovers, but my budget couldn't stretch to a reasonable quality set. The bushes have cost me just over £100 for all six, the dampers were £133 for all four, and the ARB will be just over £150. Add in about £30 for replacing the bolts, and I will hopefully have a decent ride for just over £410.
For the same price I'd have got some cheap coilovers, that would still be having to deal with expired bushes and a rear end that refuses to stay horizontal.