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So I have a 12 bolt mono leaf in my 67 Camaro.
I bought Hotchkis 3" lowering springs, Detroit Speed (DS) single to Multi leaf conversion kit, and Caltrac traction bars.

I installed the DS steel locating pad to compensate for the bolt coming through the springs. The issue I have is with the DS aluminum spacer between the perch and the traction bar shock plate there is still a +-quarter inch space between the DS spacer and the shock plate.

So is it alright to just do away with the aluminum spacers?

What should I do?
 

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I'd feel a little better about it if you could squeeze the spacer a little bit. Maybe a washer top and bottom of the spacer? I don't think it should be loose. You got the U bolts tightened up good? You should be able to torque right down on those suckers.
 

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What's that extra thing in there in the top? There's two plate looking things and then the leaf.
 

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You only need the DSE mono to multi conversion kit IF you are using compressible rubber or poly pads in the stack. It just keeps the pads from squishing out the sides.

It looks like you don't have those, so leave it off.. If you were to add washers or another spacer, then - since everything is metal and not compressible - you can't be assured that the spring is tightly clamped by the lower plate, caltracs or whatever. With no pads you need a gap between the bottom of the perch and the lower plate. It can be a big gap or a small gap - doesn't matter, so long as the rear is located correctly and securely via the locator stud.

My setup is very similar to yours with no rubber pads but with a multileaf perch. Notice the gap, in fact notice the thin spacer at the bottom of the stack to make certain there was a gap.

 

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Yes - that is how I would do it since you aren't using rubber pads. Does the Caltrac shock plate have a hole in it for the nut on the bottom of the spring to fit into?

On mine, I welded the very top plate to the spring perch. Look closely at my photo and you can see my crappy weld.
 

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I'd go with no aluminum spacers, & no leaf pads, just leave a gap on the sides. If you had stock mono leaf lower shock plates, they are thinner than multi leaf plates & tend to bend when the bolts are torqued. I'd reinforce them.
 
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