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What is the advantages / disadvantages of installing a lsd kit on a BMW E36 328i?

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Advantages oF LSD:
A limited-slip differential (LSD) is a type of differential that allows its two output shafts to rotate at different speeds but limits the maximum difference between the two shafts. In curves, the wheels have different speeds, with the outer wheel having to cover a much longer distance (compared to the inner wheel). Depending on the driving situation, it can happen that one wheel starts to spin and another stops completely. This effect is possible, for example, on icy roads. With a differential lock, a speed compensation can be created. The lock thus offers a largely rigid connection in the area of ​​the wheels on an axle, which leads to an improvement in traction.

Disadvantages:
They are subject to mechanical wear, so that the locking effect can decrease with increasing mileage of the vehicle.

Locks react sensitively to tires with different rolling circumference (for example due to different air pressure, different tread depth) because they lead to differential speeds and result in increased wear.

When cornering below the limit range (everyday operation), they can lead to increased understeer, because here the required speed compensation is hindered when cornering.

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