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Originally Posted by Matt L
Assuming that everything in the suspension is tight, oversteer is caused by the "slip angle" of the rear tires changing faster than the front.
Typical causes are low rear tire pressure, hard rear shocks, hard rear springs, hard rear anti-sway bar (all compared to the front), insufficient toe-in on the front tires, to much weight in the rear, or even different rear tire construction.
But first check the rear suspension and wheel bearings to make sure that something isn't loose.
(edited to correct grevious error)
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I haven't experienced any issues with springs or shocks affecting the wallowing feel on the 300TD steering. The springs were stiffer in pre-82 cars (N/A diesels) and that gives a little more responsive feel to the wagons. I fuond out after converting a NA to a turbo. Another member was replacing the springs in his wagon with springs from an earlier vintage.
The SLS will keep the car level with even a big load in the back and steering doesn't change like it would in a sedan but the feel from the center of gravity and weight will be where it usually isn't and the car will not corner like one without the load.
I doubt the rear sway bar is a factor, unless someone went too a lot of trouble finding a stiffer one for the 123 wagon. If they had the PO would have noted it I'm sure. The description sounds like a worn steering box or possibly it is misadjusted.
If the rear shocks go out they usually leak the hydro fluid all over the ground and the level in the reservoir drops significantly (and the pump will go bad!)