My '86 300E and '89 300TE generally drive similarly, as one might expect. However, there are two areas where the 89 positively trumps the 86: steering response and brake feel.

The newer car seems to have a quicker ratio steering and turn-in is much more rapid (and satisfying). Was a change to the steering box made between '86 and '89? If so, is a retrofit possible/practical? Incidentally, the steering in the '86 feels much "heavier".

As for braking response, I think ultimate performance between the two is very similar, and I stick to OE rotors/pads, but the '86 has a spongier pedal and is subsequently more difficult to modulate. Is this just age? Would better brake lines make a difference?

Any thoughts would be appreciated!

The steering box in both cars are the same, but the suspension is slightly different. Also the alignment specs are different, I'll bet that the front shocks are also a lot weaker on the 1986. Have the alignment set for a 500E & see how much better the car will handle!!
The brake system needs to have the fluid flushed every year to remove moisture that builds up in the fluid. New rubber hoses every 10 years is also necessary.

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MERCEDES BENZ MASTER GUILD TECHNICIAN
ASE MASTER TECHNICIAN
27 YEARS M.B. TECH