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I've been told by two lift shops in Vegas that they've stopped installing polyurethane spacers (i.e. Daystar 2.5" Leveling kit) due to sagging problems. Has anyone heard of this?
No. I have Daystar 2" spacers under my 4" lift front springs, and I can visually see a 2" gain. I have never heard of this, and don't have any problems with sagging.
It wouldn't be the spacer causing the sagging unless the other suspension components are limiting the wanted lift. With a 2.5" spacer only, and no other lift components, the springs might bottom out sooner than original due to the decreased flexibility. 2.5 inches is a lot to lift without drop-down brackets for the rest of the suspension.
Maybe I'm FOS, but you can only usually go 1.5 inches without needing more bracketry.