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King of Rear Clunks
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I'm no expert on E34s, but do they also suffer from the well-known control arm bushing problem that plagues E24 and E28s? You may want to do some investigation in that area to see if its something that also plagues E34s. The symptom sounds about right.

Essentially, the fix involves getting different aftermarket or modified E32 bushings and have them pressed into the control arms. I have a friend with a E24 going through the same thing.
 
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