S true 'cut' means to sand back the top layer, being clear coat, there is no colour to it. It removes most blemishes, being water marks, bug staines, some stone chips (if not really deep) etc etc.
Once the top layer has been cut, the painter will respray it with clear coat and it will look good as new. Most 90s cars have a clear coat on them, and yours being the colour it is will definately have one, hence the reason is shines so beautifully and looks very deep in colour.
Get some quote, see what ya come up with.