Sway bar bushings are located along the center of the bar. When they wear out, excess play is introduced which causes noise. Turner Motorsport carries OE BMW rubber bushings as well as high quality aftermarket for those looking to upgrade.
The sway bar in your vehicle connects both of the lower control arms together. During cornering, the wheel on the inside tends to want to roll under. The sway bar acts as a spring and keeps this from happening.
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