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Do you have rims yet? If not, I would wait until you do before you lower the car. The reason I say this, is because when the new rims are installed, you'll have a better idea of how much you will need to lower the car to reduce the fender gap.
Go with coilovers if you can afford them, but there is nothing wrong with sport shocks/struts and springs.
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'94 Supercharged E36 325is (150,000 original km's)
Mods
-Vortech V9 G-Trim @ ~10psi w/ BOV
-Shortstack headers
-Vortech RRFPR
-255LPH Walbro fuel pump
-TEIN SS Coilovers w/ Pillowball mounts
-Keskin KT1 17x8.5 & 17x10
-Remus full catback
-Authentic Rieger Infinity I body kit
-SMT6 EMS (Untuned)
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