960 Chewing Up Rear Tires

[inLA]

My 94 960 is eating rear tires (cord hanging out of inside of rears in 20K miles). The dealer says $1000K min for a new rear end. The couple local shops say $350 with no guarantees at all. They say that the rear ends are very temperamental and can often NEVER be aligned again once they come out.
Any thoughts?

 

[James Sweet]

My 94 960 is eating rear tires (cord hanging out of inside of rears in 20K miles). The dealer says $1000K min for a new rear end. The couple local shops say $350 with no guarantees at all. They say that the rear ends are very temperamental and can often NEVER be aligned again once they come out.
Any thoughts?

I've never heard of this problem before, are the bushings in the rear completely shot? Also any chance this has a LSD that may be locked up?