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I had a 97 passat tdi that I wanted to "gear up" so I went with the next taller tire using approximately the same tread width. That did well, I really like the easier-running engine and better gas mileage, and the handling was fine. The next set of tires I went one step taller. I think the gas mileage probably went up again but the handling was definitely worse. I might have gone too far. However as CapriRacer notes, maybe it had more to do with the different brand than anything.
One other bad effect is that, driving on gravel roads and going around corners with potholes (so the suspension compresses), the tire snags the wheel well, and then you have to bend it back. It was a minor effect for me because the car was old, but you might not want to see that happen in a car you really like.
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