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RWD M3: Rubbing on 20" Performance Wheels + 255/35/20 Tires

I just got a RWD M3 last month. I bought some used 20" sport wheels (8.5" ET 35) and 255/35/20 Michelin Pilot Sport AS4. I found a thread on Reddit with someone claiming this exact tire/wheel setup did not rub....well the front tires rub for my car now 🤦‍♂️

I want to say there is about a 3mm gap between the top of the tire and the steering knuckle. I put some masking tape on the steering knuckle where it rubs. The tape ended up with some black marks on it, but did not really get pulled off the steering knuckle at all. This makes me think that the tire is just slightly rubbing. I also did not hear any significant rubbing sounds while driving. I saw a some people suggest a 3mm spacer, I tried this and it looks like it helped a little bit. But it is still rubbing and now my tires poke out a little. The picture is what it looks like now with the 3mm spacer.

I might try a 5mm spacer but from what I can tell it will still rub with this too. Is there any major risk to just leaving this as is until the tires wear down and it stops rubbing? This making me really nervous, any guidance would be greatly appreciated for this!!
 

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If I got an alignment shop to squeeze out some negative camber (without going for aftermarket camber arms), would that make a difference at all?
No. The steering knuckle assembly and your wheel will move with each other so their relative distance to each other will not change. Even if it worked, changing the camber to do it would be a terrible solution. Though increasing negative camber would accelerate wear where you need to most. Lol.
 
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No. The steering knuckle assembly and your angle will move with each other so their relative distance to each other will not change. Even if it worked, changing the camber to do it would be a terrible solution. Though increasing negative camber would accelerate wear where you need to most. Lol.
lol...okay yeah totally makes sense.

my tire diameter is 27.3". Seems like people are doing fine with tires up to 27.1 inches. It doesn't sound like I am at risk of blowing my tire or anything with the steering knuckle moving in line with the tires for the most part. if the knuckle is just grazing my tire does that seem okay to you?
 
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