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The conundrum of towing with a leveled truck.
If being leveled is more important, either get some air bags or learn to live with it.
If towing is more important, get rid of the leveling kit.
If equally important, look at air bags or some other form of adjustable suspension help (like RAS) and use a weight distributing hitch to overall level the rig.
Truck is leveled. If I didn't have a leveled truck, the amount of squat from the camper would make me level but when you start out level, even with a weight distributing hitch I was still a bit nose high. Not that I tow at night but my headlights were pointed too high.
There are two options. Remove the leveling kit. Wasn't really an option I wanted to go down as that would mean changing out tires at a minimum and probably rims as I would probably go back to stock size at that point. I really didn't want to go that direction. Which of course is my choice.
Then the only other option is to address the rear suspension with some form of beefier springs. Now that can be done a few different ways all of which have some pros and cons.
Air bags: This solution has been around proabbly the longest. I went this route I run around 10PSI normally with the two bags independent from each other. While this means I have to fill them individually, It has the added benefit from what I notice less body roll in corners. A good example of where this stands out is a cloverleaf. Now I replaced my WRX with this truck and it will never corner like that car but it is a little closer. The bags themselves are not all that expensive, it starts to get more expensive if you are also adding an onboard compressor. I skipped that part and just hit them with the air compressor when I need it.
Jounce (bump) stop replacement: This would be with something like Timbrens or some of the other products that replace the Jounce/Bump Stop on the rear axle with one that is taller and provide a bit of additional spring suspension as load is added. They normally don't touch the axle when there is no load so they shouldn't impact ride quality with no load. I wanted a bit more ability to tune the assist which is why I chose airbags but I did consider this.
Add to the springs: Since you have a '16 with leaf springs I will lump this next change into the next category. There are add a leaf type modifications where you add another leaf spring to the rear or a bracket that has a spring. Specifically on this one I am talking the RoadMaster Active Suspension. Some might not lump this into the same category as Add A Leaf but I do from the perspective of it may impact the unloaded stock ride quality a bit. Though I have never tried them.
For the most part these are your three main options with several brands in each that I would look into. Of course each company will say their solution is better than the others but do your homework and decide what makes sense for you.
Best way to correct this is by using a WDH to put some of that load up on your front suspension. The bags, RAS, sumos, etc... they are one solution but they will all affect the rear height when unloaded. They also don't push weight up on the front axles. They just stiffen the rear. I went with RAS and removed my rear 4x4 block... but that's only cause I haul more crap in my bed than I tow.
Just installed those on my truck and so far I'm very happy with them. They did raise the rear of the truck up about 3/4" which should account for the squatting when towing.
I leveled out my truck and puchased riderite air bags.
Cost me 239.00 on Amazon, installation took 2hrs as its a bolt on kit. Absolutely love it, doesnt add capacity but i over loaded my truck to see if infact they can decrease squat..
couldnt be happier... the tires hide the bags too.
I purchased a "used" set. Which was that the box was damaged and everything inside was still in its original packaging. eveidence of being previously installed