The first question you need to ask yourself is whether or not you need a table capable of having two separate tonearms. If not, go for the Classic 3 which is a substantial upgrade from the Classic 1.
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Your dealer is misinformed, call VPI directly for clarification as the Classic 3 with a 12.7 is not a "standard" offering. My local dealer has ordered this combo for a couple of their customers.
I agree that a Classic 4 with only 1 arm would be a better option for the 12.7 arm as the Classic 4's larger foot print will balance the look of the longer arm.