G'day,

other people on here might know more but if you've got fluid leakage at the rear shocks plus they're making a racket then i'd say it's time to replace them.
How is the car when you bounce the rear end?
I just replaced the rear shocks on my 300E after it was bouncing too much at the back and I had fluid leakage.
Dunno how similar the C-class is to the old E-class, but the rear shocks were easy to replace DIY. Dunno what's available in Oz, but I got a pair of Bilstien comforts and they're very good.

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1993 320TE M104
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past:

1983 230E W123 M102
1994 E300D S124 OM606 (x2)
1967 250SE W108 M129
1972 280se 3.5 W108 M116
1980 280SE W116 M110
1980 350SE W116 M116
1992 300E W124 M103
1994 E280 W124 M104
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"music and women I cannot but give way to, whatever my business" -Pepys