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Couldnt really think of am appropriate title without explaining question so here it is.

One garage tells me ATF is ok to use as power steering fluid whereas another garage said most cars can use ATF as power steering fluid but VW's prefer CHF (Central Hydraulic Fluid).

Who is right?

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Whoaaa, someone's got a massive pic somewhere shunting the reply windows right over.....Pete? LOL!

Use the VAG fluid only. The ZF racks fitted to the VR6 seem quite sensitive to oil quality.

You can get a rack rebuild kit from VW as it happens, which is a little brown box with some seals and bearings. Costs 90 quid. Cheaper than a whole new rack @ ~£600+VAT exchange.

I've never seen physical wear to the actual rack and pinion themselves and slack can be taken out with the rear adjuster, so throwing 9 sheets at an old rack is a good investment imo.

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