I think a comprehensive check of the front suspension is in order.
For about $70, some parts suppliers offer a kit of some common replacement suspension parts. This would include tie rod ends, ball joints, and most front bushings. A great deal really.
My guess is that you could just replace the big lower control arm bushings ($10 each or less) and that will be half the problem. Additional play in the steering is often from INNER tie rod ends, the part screwed onto the ends of the steering rack.
These are not included in the kits and are more expensive, but not extremely hard to replace. Any shop capable of front end alignments should be able to replace these if worn. An alignment is definitely in order after all this work, and essential to getting the right "feel" in your car.
Also, as mentioned the rear trailing arm bushings, as well as torque rod and panhard rod bushings in the rear axle should be inspected and replaced as necessary.
After this kind of work, plus Bilstein Touring struts and shocks, and Turbo sway bars, my 87 240 is tight, solid, and handles extremely well.
Good luck with it.
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Rob Bareiss, New London CT ::: '87 244DL/M47- 234K, '82 245T/M46-182K, '89 244DL/AW70- 212K Not too distant past: 86 244DL 215K, 87 244DL 239K, 88 744GLE 233K, 88 244GL 147K, 91 244 183K
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