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What you are describing to me sounds like an upper spring seat, a part known to fail on these cars. They are about $30 and when they go bad and you go over a bump, the whole front end sounds like it is going to come apart but it is actually not dangerous- the noise sounds worse when it is cold. Another option could be the ball joint- I have had that fail and that IS dangerous as your tire will pivot 90* and your cv joint could separate. That cost a whopping $15 for the part. Either could be replaced by a reputable mechanic for 2-3 hours labor. Your mechanic sounds like a scam artist to me. Good Luck!
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1987 740GLE 272K+, 2001 V70 T5 98K+
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