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The 964 C4 understeers, in comparison with a C2. As a daily driver, it is a fantastic car. On the track, it is also a lot of fun but you would benefit from dialing some of the understeer out. Common tips for that include a larger rear antiroll bar, wider front tires, and shutting off the traction control before going out on the track.
The actual AWD system scares people because (1) it is complicated and (2) it is expensive to repair or replace parts. But that is only if they break, which happens very infrequently. As in I check this board regularly and in the 2-1/2 years I've driven my C4 I cannot recall anyone who posted to say that he had actually experienced a problem with the 964 AWD system.
The problems you will run into are present on the 964 C2 as well: The engine will mark its spot in the garage by dripping oil. Many leaks can be plugged without removing the engine, but it takes patience to do so. The steering rack will most likely develop a leak if it has not already, and you will get drips on the garage floor and keep proper Pentosin steering fluid on hand at all times until you get around to rebuilding the steering rack or having someone else rebuild it for you. The steering pump can also leak, but that seems to be significantly less common than the rack. The sunroof seals will probably need to be replaced after decades of exposure to the elements. Same with the carpet.
If you are going to drive at least 80% on the street, a 964 C4 is a good choice. Especially given the artificially depressed price at which you can find one. The only time I wish I hadn't bought my 964 C4 is when it understeers a bit on the track. But then I drive it home and realize I am at the track a maximum of 6 days a year and on wet, sandy, icy, or gravel roads the other 359 days where the AWD in these old cars out-performs every other vehicle I have driven except for a 2011 AWD Mercury Mariner (the exception being deep snow, for which my lowered 964 does not have enough ground clearance).
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