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Most likely suspension--first place to look would be rear shocks and rear spring--if rear shocks are weak and need replacing--good chance the fronts need changing as well.
If there is power to the wheels when you put it in gear (which there would be) if your foot is on the brake then that power on the rear wheels would be pulling down the rear end just a small bit. This is not a vette thing...I am just thinking of physics. If there is any force on the rear tires then it would pull it down when in gear..Try putting it in reverse instead and does the rear end come up an inch or so?
Almost all front engine rear wheel drive cars are gonna do this. My 84 TransAm 'squats' as well, but since my vette has a higher rear gear ratio and more power is going to my rear wheels....it 'squats' even more.
That's the Vette "Squat" but I don't know why it occurs.
try an archive search on "squat." I recall some lengthy discussions on the topic. You will either get some useful threads.... or you will get "squat" !
I'm pretty sure the squat is caused by the ring gear trying to climb the pinion gear in the differential. Vettes seem to go in the opposite direction of some other cars. Our old Plymouth used to raise its rear end when you held the brake and stepped on the gas with the trans in Drive. Vettes squat when you do the same thing. Maybe the pinion gear is on the opposite side of the differential.
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